In the News
Feb 18, 2015
By Mike Bryan
Low oil prices and the resulting low gasoline prices have certainly been a boon to motorists. If someone were to have asked me, I would have said that oil would never again be this low. But then, when corn was $7 a bushel, many thought that they would never see corn prices below $5 again. So as the old saying goes, “nothing cures high prices like high prices.”
While not everyone would agree, the recent fall in oil prices makes an even stronger case for all forms of domestic energy, both renewable and nonrenewable. In fact, what the oil producing countries are doing makes a strong case for greater energy independence in general. The cost of extraction has not changed, nor has the cost of transportation and refining. What has changed is reduced demand because of shale oil discoveries like the Bakken and a strong and growing renewable fuels industry.
The cost of extracting a barrel of oil is likely less than $10, so oil producing regions of the world can and are playing fast and loose with the price in an attempt to decimate the shale oil industry and at the same time cripple the renewable energy industry. This is economics 101, when demand lessens, you reduce your price to maintain market share and then slowly raise your price as the opportunity avails itself, with a side benefit of crippling competition in the process.
My point is that we should all be scared out of our wits to really see the power that these oil rich countries have over our economy, our environment and our energy future. When an intentional price cut is imposed by one segment of our energy supply chain that is exclusively designed to eliminate competition, we should not celebrate it, we should be mad as hell.
Whether it is in the first quarter or second quarter of 2015 or sometime later in the year, the price of oil will return to a higher price. The question we must come to grips with is what will be the long-term fallout on domestic oil production and the renewable fuels industry as a result of this short-term drop in oil price? It is, indeed, a shot across the bow of domestic oil and renewable fuels, that “we” can make your industries noncompetitive anytime “we” want. “We” control the market and “we” will decide what domestic energy programs succeed or fail.
If ever there was a time when the government should rally behind the domestic energy industry to subsidize or support in any way possible its continued growth, now is that time. Because once new investment dries up because major oil producing countries decide it should, it will never regain its momentum. Who would invest in something that someone else, at their discretion, could make unprofitable overnight?
Artificially low oil prices should be seen as what they really are, a wakeup call for the world to vow to never be dependent on a single energy source again. While the price of energy independence may be more in the near-term, long-term the benefits of that independence will be huge.
That’s the way I see it.
Read the original story here: Short-Term Pain Long-Term Gain
Feb 17, 2015
By Bob Dinneen
From the first tip-off to the trophy presentation, March Madness brings a unique sense of competition, hope and excitement for basketball fans everywhere as teams emerge and make a run for the championship. In the same way, competition, hope and excitement abound as E15 is gaining visibility and emerging on the market in a big way. What started off in 2012 as a single station offering the higher-level blend in Lawrence, Kansas, has grown to stations in 15 states selling the fuel.
E15—which was approved by the U.S. EPA for 2001 and newer cars, trucks and SUVs—has been in the marketplace for two and a half years. It can now be purchased at stations in Alabama, Arkansas, Florida, Iowa, Illinois, Kansas, Michigan, Minnesota, North Carolina, North Dakota, Nebraska, Ohio, South Dakota, Tennessee and Wisconsin.
Not only is E15 expanding into new states, but it is advancing to the next round in other areas as well. Popular automakers such as Audi, Ford, General Motors, Honda, Jaguar and others now approve the use of the higher-level fuel blend in their new 2015 vehicles. In fact, nearly 70 percent of auto manufacturers approve the use of E15 in model year 2015 vehicles. Swish!
But no matter how much progress is made, or how well your team is doing, there will always be the naysayers who get in front of the microphone and spew their opinions without knowing the facts or doing the proper research. In the case of E15, Big Oil and its counterparts are ginning up false concern over engine damage and misfueling. But, no matter how little faith Big Oil puts in consumers, drivers know what can and can’t be put in their fuel tanks. In fact, history reveals no known cases of engine damage or inferior performance while using E15. Moreover, there have been no known cases of misfueling in small engines, boats, pre-2001 vehicles, or other nonapproved equipment, and zero liability claims against retailers, blenders, refiners or automakers have been reported.
The fact that E15 is not causing engine problems shouldn’t come as a surprise to anyone given the record-breaking testing E15 went through before gaining the EPA’s stamp of approval for use in vehicles 2001 and newer. The overall testing done on E15 encompassed more than 6 million miles. Separately, 43 studies examined E15 and only one—which was paid for by the American Petroleum Institute—had concerns with the blend. The National Renewable Energy Laboratory has since called a technical foul after reviewing the Big Oil-funded research and finding that “the conclusion that engines will experience mechanical engine failure when operating on E15 is not supported by the data.” It doesn’t get any clearer than that.
Since its debut, consumers have driven more than 100 million miles on E15 and the higher-octane, typically lower-priced product is delivering as promised. In fact, retailers who have made the switch over to E15 report that consumers are embracing the higher-level blend. The future is bright as hundreds of E15 stations are in the works with many expected to open in the coming weeks and months. It will take time for E15 to work its way across the country, just as it did for E10, and just as it takes time and hard work for teams to move from the Sweet 16, to the Elite Eight, to the Final Four and beyond. It’s still early in the game for E15, but it's a good bet E15 will be a bracket buster for Big Oil's lobbyists looking to keep consumers from getting in the game.
Read the original story here: E15's Big Dance
Feb 13, 2015
By Brian Jennings
"Traveling to Washington, D.C., and having the opportunity to meet and talk with members of Congress was quite an experience. Unfortunately there are leaders in our country who are unaware of the many benefits of renewable fuels and the positive effect ethanol has on not only the American farmer but also the country as a whole."
-Kenton Johnson, Granite Falls, MinnesotaKenton Johnson serves on the board of directors for three Minnesota ethanol plants; Bushmills Ethanol Inc., Granite Falls Energy LLC and Heron Lake BioEnergy LLC. He stood shoulder-to-shoulder with fellow ethanol supporters to promote the benefits of our industry to lawmakers during the 2014 Biofuels Beltway March.
The American Coalition for Ethanol was the first organization to endorse the idea of the renewable fuel standard (RFS). Our members provided the momentum essential for this proposal to eventually become law. Since the RFS was enacted by Congress and signed into law by President Bush, ACE members like Kenton Johnson have also been proactive about showcasing how it has been a success.
One of the primary ways we’ve highlighted the benefits of the RFS is through our annual Biofuels Beltway March fly-in to Washington, D.C., occurring (wait for it) each March. Consider this your personal invitation to join Kenton and other ethanol advocates at our seventh annual fly-in, March 24 to 25.
The goal of ACE’s Biofuels Beltway March is to help you tell your personal ethanol story to decision makers in D.C. and demonstrate the breadth and depth of grassroots support for renewable fuels. If you’ve taken part in previous ACE fly-ins, please join us again this year and encourage a colleague to come along. If you haven’t participated, there is no more important time to help protect your ethanol investment and see first-hand how your membership support of ACE makes a strong and positive difference inside the Beltway.
Nearly 80 people from all walks of life, including students, bankers, farmers and industry vendors joined ethanol supporters like Kenton at last year’s fly-in to share their personal ethanol stories with more than 160 members of Congress and top administration executives. Our fly-in also featured some of the first retailers in the U.S. to sell E15, E30 and E85. The retailers explained how they have made money and won new customers because they’ve offered these new fuels at their stations.
With opponents’ attacks against E15 and the RFS intensifying and more than 70 new members elected to Congress, active participation in our fly-in takes on greater importance this year. In addition to a large crop of incoming freshmen, just a small fraction of current lawmakers were in office when the original RFS was enacted in 2005 and modified in 2007 by Congress. Moreover, low oil prices and EPA’s mismanagement of the annual volume setting process will be used by our opponents to call for repeal of the RFS. We need you to meet face-to-face with the EPA and members of Congress to help show that the RFS is working, that cellulosic ethanol is real, and how blends such as E15, E30 and E85 are better and cleaner choices for consumers.
In addition to meetings with Congress on Capitol Hill, this year we are also planning to meet with officials from the White House, the EPA, and the Department of Transportation and Surface Transportation Board officials about our concerns with the proposed rule on DOT-111 tank cars and ongoing rail congestion. We also expect more retailers who are selling higher ethanol blends to join us once again and share how they have new customers and profits because they’re selling E15 and higher blends of ethanol.
There is no better time for people who have a stake in the success of the ethanol industry to come march with us. I hope to see you March 24 to 25.
Read the original story here: Come March With ACE
Feb 11, 2015
By Erin Voegele
The U.S. Energy Information Administration has published the February issue of its Short-Term Energy Outlook, reporting ethanol production is expected to average 938,000 barrels per day this year.
According to the EIA, ethanol production reached a new record monthly average of 978,000 barrels per day in December, with production in January estimated to be 969,000 barrels per day. Ethanol production averaged 933,000 barrels per day last year, and is currently expected to average 938,000 barrels per day in 2015.
The forecasted 2015 average made by EIA in the February STEO is up slightly from the forecasted 936,000 barrel per day average made in the January STEO. The forecast for 2016 production is down slightly, however, from 937,000 barrels per day forecasted in the January STEO to 936,000 barrels per day forecasted in the February STEO.
Biodiesel production averaged approximately 80,000 barrels per day last year and is expected to average 84,000 barrels per day this year and in 2016.
According to the U.S. EIA, U.S. weekly regular gasoline retail prices averaged $2.04 per gallon on Jan. 26, the lowest since April 6, 2009. Prices increased to $2.19 per gallon on Feb. 9. EIA expects gasoline prices, which averaged $3.36 per gallon last year, to average $2.33 per gallon this year, increasing to $2.73 per gallon next year.
EIA’s most recent weekly data indicates ethanol production averaged 948,000 barrels per day the week ending Jan. 30, down from 978,000 barrels per day the week ending Jan. 23. Imports reached 33,000 barrels in November, with 25,000 barrels of that coming from Brazil and 8,000 barrels from Canada. In October, only 30,000 barrels of ethanol were imported into the U.S, including 6,000 barrels from Canada and 24,000 barrels from Singapore. U.S. ethanol exports reached nearly 2.17 million barrels in November, up from nearly 1.89 million barrels in October. India, Canada, Brazil, South Korea and Philippines were among the top importers of U.S. ethanol in November.
Read the original story here : EIA Increases 2015 Ethanol Production Target
Feb 8, 2015
Kansas Ethanol LLC has entered an agreement to use ICM Inc's value-added Fiber Separation Technology (FST) platform. FST removes fiber from the standard ethanol process and allows for increased ethanol and oil recovery yields.
This in turn, ICM said, unlocks throughput and efficiency for each gallon of ethanol produced and creates options for diversified co-products with high-protein feeds and fiber.
"Kansas Ethanol was in a similar situation a few years ago as an early adopter of ICM's Selective Milling Technology (SMT) and SMT's success gave us a great deal of confidence as we considered taking this next step as an early adopter of FST," said Mike Chisam, president and CEO of Kansas Ethanol.
ICM's SMT is geared towards increasing ethanol yields, reducing enzyme use and decreasing centrifuge and dryer loads. ICM said Kansas Ethanol is one of 19 ethanol plants in North America that use SMT.
"Kansas Ethanol is both a valued customer and partner in the industry. We are impressed with Kansas Ethanol's desire to be a leader in the renewable fuels industry and we appreciate this opportunity to help them set new operation and production standards with the addition of FST," said Chris Mitchell, president of ICM.
Read more here : ICM Inc Announces Contract With Kansas Ethanol LLC On Full-Scale Commercial Installation Of Its Fiber Separation Technology
Feb 10, 2015
By Sussane Retka Schill
Ten more corn ethanol plants were approved through the U.S. EPA’s efficient producer petition process (EP3) at the end of January, bringing the total to 19. The first round of nine approvals were announced in December.
The 10 corn ethanol plants include Badger State Ethanol LLC, Green Plains Ord LLC, Lincolnland Agri-Energy LLC, Tharaldson Ethanol Plant 1 LLC, Dakota Ethanol LLC, Green Plains Shenandoah LLC, Lincolnway Energy LLC, Farmers Energy Cardinal LLC, Highwater Ethanol LLC and Quad County Corn Processors.
Late last year, the EPA streamlined the petition process used by producers wanting to demonstrate above-average greenhouse gas (GHG) reductions. Ethanol producers must provide the bushels of corn processed, their natural gas and electricity consumption and the gallons of ethanol produced, which are then plugged into a new GHG calculation tool developed by the agency.
Under the current renewable fuels standard program(RFS), the production volume of existing corn ethanol plants was grandfathered in, and any new production above the gallons registered with the EPA are required, by law, to meet the 20 percent GHG reduction threshold when compared to the baseline gasoline. The average GHG reduction value for corn ethanol plants in the original 2010 modeling done by EPA was about 17 percent, including controversial indirect land use change emissions. Energy efficiency improvements and ethanol yield gains mean 19 ethanol producers can demonstrate GHG reductions better than 20 percent.
Read the original story here : EPA Names 10 More Efficient Corn Ethanol Producers
Feb 5, 2015
U.S. ethanol exports reached near-record levels in 2014, sending 836 million gallons of ethanol worth $2.1 billion to international markets, the Renewable Fuels Association (RFA) explained today in its new publication “2014 U.S. Ethanol Exports and Imports: Statistical Summary.” The publication offers a succinct overview of the U.S. ethanol export and import markets in 2014 showing the upward trend in exports and the downward trend in imports — reaching the second-lowest levels — since 2005.
The report finds that U.S. ethanol has made its way to all inhabited continents of the world, reaching more than 50 countries. The top five countries importing U.S. ethanol last year included Canada, Brazil, the United Arab Emirates, the Philippines, and India. Meanwhile, exports to the European Union remain down due to a punitive trade tariff it chooses to impose on U.S. produced ethanol.
Bob Dinneen, president and CEO of the Renewable Fuels Association, noted, “Last year U.S. ethanol producers produced a whopping 14.3 billion gallons of ethanol and nearly 6 percent was exported globally. We are working diligently to increase demand for this product abroad. It has been rewarding to see countries all over the world embrace the U.S. produced, high-octane fuel, which has also been the lowest-cost liquid transportation fuel found anywhere in the world.”
Dinneen continued, “U.S. ethanol is now exported to 51 countries across the globe, including regions that once seemed far-fetched as renewable fuel destinations such as the Middle East and North Africa. But, we will not stop here. We will keep working with others in the industry and the U.S. government to keep exploring new regions that would benefit from U.S. ethanol. Last year, RFA participated in trade missions to Panama, China, Peru, Japan, and South Korea and we will keep at it until all countries understand the value of U.S produced ethanol.”
The publication will be distributed at the 2015 National Ethanol Conference on Feb. 18–20 in Grapevine, Texas, and fits the conference theme “Going Global.” Keynote speaker Ron Kirk, the former U.S Trade Representative, will give insight into international trade relations and a panel of industry experts will discuss global ethanol markets in a session titled “Going Global: Building Ethanol Demand Internationally.”
Read the original story here : Ethanol Expands Global Reach, RFA Releases New 2014 Export / Import Publication
U.S. ethanol exports reached near-record levels in 2014, sending 836 million gallons of ethanol worth $2.1 billion to international markets, the Renewable Fuels Association (RFA) explained today in its new publication “2014 U.S. Ethanol Exports and Imports: Statistical Summary.” The publication offers a succinct overview of the U.S. ethanol export and import markets in 2014 showing the upward trend in exports and the downward trend in imports — reaching the second-lowest levels — since 2005.
The report finds that U.S. ethanol has made its way to all inhabited continents of the world, reaching more than 50 countries. The top five countries importing U.S. ethanol last year included Canada, Brazil, the United Arab Emirates, the Philippines, and India. Meanwhile, exports to the European Union remain down due to a punitive trade tariff it chooses to impose on U.S. produced ethanol.
Bob Dinneen, president and CEO of the Renewable Fuels Association, noted, “Last year U.S. ethanol producers produced a whopping 14.3 billion gallons of ethanol and nearly 6 percent was exported globally. We are working diligently to increase demand for this product abroad. It has been rewarding to see countries all over the world embrace the U.S. produced, high-octane fuel, which has also been the lowest-cost liquid transportation fuel found anywhere in the world.”
Dinneen continued, “U.S. ethanol is now exported to 51 countries across the globe, including regions that once seemed far-fetched as renewable fuel destinations such as the Middle East and North Africa. But, we will not stop here. We will keep working with others in the industry and the U.S. government to keep exploring new regions that would benefit from U.S. ethanol. Last year, RFA participated in trade missions to Panama, China, Peru, Japan, and South Korea and we will keep at it until all countries understand the value of U.S produced ethanol.”
The publication will be distributed at the 2015 National Ethanol Conference on Feb. 18–20 in Grapevine, Texas, and fits the conference theme “Going Global.” Keynote speaker Ron Kirk, the former U.S Trade Representative, will give insight into international trade relations and a panel of industry experts will discuss global ethanol markets in a session titled “Going Global: Building Ethanol Demand Internationally.”
- See more at: http://www.ethanolrfa.org/news/entry/ethanol-expands-global-reach-rfa-releases-new-2014-export-import-report/#sthash.CeAz7ERR.dpufFeb 4, 2015
By Chris Prentice
Biofuels manufacturer Green Plains Inc said on Wednesday that ethanol demand remains robust in the United States and abroad, even as the industry faces volatile margins and pressure from lower energy prices.
The biofuels manufacturer, based in Omaha, Nebraska, said it operated close to full capacity during the fourth quarter. It reported net income of $42.2 million for the quarter, compared with $25.5 million in the fourth quarter of 2013.
U.S. ethanol margins have been "volatile" so far in 2015, but domestic and export demand remains "robust," the company's president and chief executive officer, Todd Becker, said in a statement.
Revenue was $829.9 million for the quarter, compared with $712.9 million a year earlier, the company said.
The jump in earnings came in a quarter when ethanol producers boosted output due to high margins. Those margins have since come under pressure due as ethanol prices have fallen since early December, under pressure from a slide in crude oil prices.
Read the original story here : Ethanol Demand Remains "Robust," Margins "Volatile" - Green Plains
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By David Shaffer
Feb 2, 2015
Some ethanol makers are cheering a new biotech corn engineered strictly to produce biofuel.
Six Midwestern ethanol plants now use the hybrid called Enogen, the first corn genetically enhanced for ethanol production. Seven other ethanol makers, including Chippewa Valley Ethanol Co. in Benson, Minn., are trying it out.
“Enogen technology is truly a unique advancement in our industry,” said Mick Miller, general manager of Denco II, a farmer-owned ethanol plant in Morris, Minn., that did a trial run with the ethanol-tailored corn.
Scientists for seed giant Syngenta altered the corn to produce — within the kernel — an enzyme needed to refine biofuel. Ethanol plants using Enogen say its embedded enzyme works better than enzymes purchased separately — producing more ethanol per bushel of corn and using less energy to do it.
Jack Bernens, who heads the marketing of Enogen out of Syngenta’s regional headquarters in Minnetonka, said ethanol plants using the hybrid see a 2 to 6 percent gain in ethanol yield per bushel.
“So the plant with no additional bricks and mortar can produce more ethanol,” Bernens said.
Most of the nation’s 200 ethanol plants haven’t tried Enogen, although Syngenta is ramping up production and marketing. If the biotech corn can further boost the industry’s efficiency, it would give corn ethanol a better carbon footprint. Yet that seeming benefit is unlikely to sway environmental critics who oppose expansive corn planting as unsustainable.
“It may very well improve corn ethanol production somewhat,” said Doug Gurian-Sherman, director of sustainable agriculture at the Washington, D.C., nonprofit Center for Food Safety. “I am skeptical that it is going to be a net, significant plus.”
Enzyme companies are not idly watching as corn begins sprouting enzymes. Industry leader Novozymes reported a 19 percent boost in biofuel-related sales last year, thanks partly to its yield-enhancing Avantec enzyme introduced in 2012 and used by a third of North American ethanol plants. The Danish company says it will launch new technology this year to further increase corn-ethanol yields.
Corn Strictly For Fuel
Farmers in Minnesota, Iowa and other states are growing the new enzyme-exuding corn hybrid.
The appeal is a guaranteed extra payment for each bushel. In return, farmers must follow special procedures designed to keep Enogen out of the food supply. But not all farmers need to grow Enogen to serve their local ethanol plants.
Only about 15 percent of corn fed into an ethanol plant needs to be Enogen for the enzyme embedded in the kernels to do its job — breaking down starch for fermentation. Ethanol plants using this biotech corn no longer need to purchase the enzyme, called alpha amylase, from biochemical companies.
Six ethanol plants in Iowa, Kansas, Nebraska and Ohio have signed deals with Syngenta for commercial use of the corn, including a Central City, Neb., plant owned by Omaha-based Green Plains, the nation’s fourth-largest ethanol producer. Syngenta said a deal is pending with a seventh plant.
“It does work more efficiently,” said Jeff Briggs, Green Plains’ chief operating officer, who added that Enogen will be tried at two other of the company’s plants.
At the Denco plant, 160 miles northwest of Minneapolis, Enogen corn did such a good job of increasing throughput that the plant’s existing equipment couldn’t handle it, Miller said. So a modest equipment upgrade is needed before trying Enogen again, he added.
Ethanol maker Lakeview Energy has successfully tried Enogen at ethanol plants in Ohio and Iowa. Chief Operating Officer Eamonn Byrne said a midsize ethanol plant ordinarily would spend $300,000 to $350,000 a year to buy alpha amylase from an enzyme company. Yet the purchased product isn’t as efficient as the enzyme bred into Enogen corn, he said.
When ethanol plants shift to Enogen, they are in effect paying farmers instead of a chemical company for the enzyme. It’s a form of buying local that appeals to Mike Missman, an Enogen farmer and seed dealer in Woden, Iowa.
“That is a positive for our community and our environment,” Missman said. “That, to me, is a no-brainer.”
Keeping It Out Of Food
Although federal regulators say Enogen isn’t a risk to the food supply, some critics aren’t convinced.
Syngenta acknowledges that the enzyme-laden corn, if mistakenly shipped to a food processor, could affect some foods’ texture and other properties. But the company insists there is no safety risk — and federal regulators agreed after completing reviews in 2011.
Flour mills and others in the food industry have worried that small amounts of Enogen could get mixed with corn sent to food processors. Their concern is not about food safety. But the enzyme in Enogen kernels breaks down starch, and foods like tortilla chips, for example, need starch for their texture.
“We expressed our concerns to the USDA,” said James McCarthy, CEO of the North American Millers’ Association. “Now it is sort of wait-and-see mode.”
To address such concerns, Syngenta set up an online tracking program to watch that ethanol-only corn is separately planted, harvested, stored and shipped from other corn. Farmers who grow the hybrid are obliged to follow rules to keep Enogen out of food corn.
The Center for Food Safety, a group that opposes genetically altered foods, says Enogen’s enzyme still could be a potential food allergen.
“This is an industrial product that is not intended to be in the food or feed supply,” said Gurian-Sherman, the group’s senior scientist.
Syngenta’s Bernens said the enzyme is found in human saliva, has passed tests for allergic reactions and was cleared by the U.S. Food and Drug Administration and the U.S. Agriculture Department.
Ethanol plants that use Enogen must sign contracts with Syngenta agreeing to pay farmers 40 cents per bushel more for the special corn, which can mean an extra $80 per acre. The payment also is an incentive to farmers to sell Enogen only to ethanol makers because no one else would pay that premium.
“They are really watching that you take care every step of the way,” said Kevin Lundberg, a farmer in Murdock, Minn., who grows Enogen and intends to plant 500 acres this year.
Syngenta doesn’t charge farmers extra for Enogen seed. Ethanol plants also pay nothing to Syngenta, but must pay the premium to farmers for Enogen corn. Syngenta is looking for market share. To get the extra 40 cents per bushel, Enogen farmers must plant other Syngenta seeds on additional acres.
Teeing up cellulosic ethanol?
The first ethanol plant to use Enogen, in 2013, was Quad County Corn Processors, a farmer-owned operation in Galva, Iowa.
In a coincidence that became an opportunity, the plant separately developed technology to extract ethanol from otherwise untappable parts of corn kernels like the shell. The process, trademarked Cellerate and generically known as corn fiber extraction, requires extra equipment and special yeasts to ferment sugar from fibrous parts of plants.
Quad County Corn Processors Chief Executive Delayne Johnson said Cellerate is producing 6 percent more ethanol at his plant. That is expected to climb another 5 percent after certain yeasts win regulatory approval and can be used, he said. Federal regulators have certified the extra output as low-carbon biofuel, similar to cellulosic ethanol from corn cobs.
Johnson said using Enogen and Cellerate technologies together allows both to work better. “The two combine quite well and become more efficient,” he said. So the small Iowa co-op and the giant seed company signed a deal last year.
Now Syngenta is marketing Cellerate in tandem with Enogen. So far, no other ethanol plants are using the corn fiber technology, but it has generated industry buzz. Curious ethanol executives are making pilgrimages to Galva, which is 50 miles east of Sioux City, Iowa.
“We anticipate many tours,” Johnson said.
Read the original story here : Ethanol Industry Gets Its Own Biotech Corn
Feb 2, 2015
By Tom Doran
Chicago has a history of being proactive in moving toward environment-friendly fuel offerings and the city council will consider another step in that direction this year.
The council’s Committee on Finance passed an ordinance last month that would require filling stations within the city to provide an E15 blend fuel option. It is anticipated the ordinance will go to the full council this spring.
The effort began last March when Alderman Ed Burke reached out to the industry and worked with Growth Energy and its CEO, Tom Buis.
Finance committee members adopted an ordinance that requires all stations that sell more than 850,000 gallons annually to provide E15 as an option at the station.
Twenty-three of the council’s 50 members have signed on as sponsors of the ordinance.
“It’s not requiring customers to purchase it but it is requiring the retail station to make it available for the customer,” said Rodney Weinzierl, Illinois Corn Growers Association executive director.
“There are about 200 to 240 stations in the city of Chicago that would qualify. If stations have underground tanks that are not compatible they’re exempt from the ordinance.”
Farmers' Support
ICGA President Kenny Hartman and Vice President Jeff Jarboe attended hearings on the issue and submitted witness slips to testify. They were joined in submitting testimony by past ICGA Presidents Len Corzine and Garry Niemeyer. Other farmers also attended and submitted witness slips.
ICGA and other supporters delivered a petition with 7,673 signatures to the committee in support of the ordinance.
More than 20 representatives from the oil industry were on hand to testify against the plan.
As Weinzierl anticipated, the full council did not take up the issue at its Jan. 21 meeting “because it is now caught up in the mayoral election that is in February.
Media Battle
The proposal has drawn the media’s attention where supporters and opponents are wrestling for print space and air time.
“There has been over $1 million committed from the ethanol side of the industry just in dealing with the media and what’s going to be happening over the next few months,” Weinzierl said at the recent Illinois Farm Bureau-hosted agricultural legislative roundtable.
“It’s quite a big battle. It’s really shifted from the D.C. area into Chicago.”
In preparing for the possibility the ordinance is approved, the ethanol industry has committed $10 million to pay for retailers’ retrofit costs. The funding is available through the Prime the Pump program that pools industry resources to expand E15 and higher blends by offering grants to interested retailers.
“The Illinois Corn Marketing Board has committed $1 million also if stations want to move up and put in either E85 pumps or higher blend pumps and we have another program with the largest pump manufacturer that will cost share additional costs if stations want to do that,” Weinzierl said.
“So, there are a lot of resources going into this effort.
Chicago was the first city to ban leaded gas (1984) and also the first city in the nation to ban the methyl tertiary butyl ether additive (2000).
“So, this is not out of realm of the city moving forward in trying to do something,” he said.”
“Depending how that goes, there may be a runoff and that will pretty much determine the timeline on when that’s going to happen with this ordinance.
The mayoral election is Feb. 24 and the next city council meeting is March 18.
Read the original story here : Windy City Weighs Ethanol Ordinance
Jan 29, 2015
In a paper written for World Resources Institute, Tim Searchinger and Ralph Heimlich re-hashed their already disproven theories of “food vs. fuel” and “Indirect Land Use Change,” and repeated the years-old claim that bioenergy benefits from a “carbon accounting error.” Their original papers, published in 2008 & 2009, have been roundly rejected and criticized by the scientific community and disproven by the empirical data. Bob Dinneen, the Renewable Fuels Association’s president and CEO, released the following statement on the new Searchinger paper:
“Providing a cursory update of a failed theory is not science and does nothing to enlighten the debate about biofuels. For the better part of a decade, lawyer-activist Tim Searchinger has been promoting the flawed notion that increased biofuel use places unnecessary constraints on finite agricultural land resources. But, the "land use change" and "food vs. fuel" arguments are as wrong today as they were seven years ago when Searchinger first gained notoriety with his doomsday predictions. As passionate as he is in promoting his agenda, the truth cannot escape the fact that real-world data conclusively show reduced deforestation, reduced global hunger, and deceleration of cropland expansion during the biofuels era. In fact, Iowa State University’s Center for Agricultural and Rural Development put this issue to bed last November, finding that ‘…the primary land use change response of the world’s farmers in the last 10 years has been to use available land resources more efficiently rather than to expand the amount of land brought into production.’”
Read the original story here : A Cursory Update Of A Failed Theory
Read the RFA's response by its senior vice president, Geoff Cooper here : Debunking Searchinger's Doomsday Theories ... Again
In a paper written for World Resources Institute, Tim Searchinger and Ralph Heimlich re-hashed their already disproven theories of “food vs. fuel” and “Indirect Land Use Change,” and repeated the years-old claim that bioenergy benefits from a “carbon accounting error.” Their original papers, published in 2008 & 2009, have been roundly rejected and criticized by the scientific community and disproven by the empirical data. Bob Dinneen, the Renewable Fuels Association’s president and CEO, released the following statement on the new Searchinger paper:
“Providing a cursory update of a failed theory is not science and does nothing to enlighten the debate about biofuels. For the better part of a decade, lawyer-activist Tim Searchinger has been promoting the flawed notion that increased biofuel use places unnecessary constraints on finite agricultural land resources. But, the "land use change" and "food vs. fuel" arguments are as wrong today as they were seven years ago when Searchinger first gained notoriety with his doomsday predictions. As passionate as he is in promoting his agenda, the truth cannot escape the fact that real-world data conclusively show reduced deforestation, reduced global hunger, and deceleration of cropland expansion during the biofuels era. In fact, Iowa State University’s Center for Agricultural and Rural Development put this issue to bed last November, finding that ‘…the primary land use change response of the world’s farmers in the last 10 years has been to use available land resources more efficiently rather than to expand the amount of land brought into production.’”
More information can be found here as RFA’s Senior Vice President Geoff Cooper takes an in-depth look at Searchinger’s claims and systematically disproves them with hard data and findings from the scientific community.
- See more at: http://www.ethanolrfa.org/news/entry/a-cursory-update-of-a-failed-theory/#sthash.WPfGho9s.dpufBy Daniel Looker
Jan 27, 2015
Corn ethanol had dodged the latest bullet in Congress, but attempts to weaken or repeal the Renewable Fuel Standard are likely to be attached to must-pass legislation in Congress all year.
That’s the consensus of lobbyists and ethanol advocates who spoke Tuesday at the Iowa Renewable Fuels Summit near Des Moines, Iowa, Tuesday.
The most recent attack was an amendment in the Senate to the stalled Keystone XL Pipeline bill. An amendment proposed by Senators Pat Toomey (R-PA) and Diane Feinstein (D-CA) to strip corn ethanol from the Renewal Fuel Standard didn’t come up for a vote. On Monday, Democrats managed to delay the bill by blocking Senate leaders’ attempts to wind down debate.
“I think for right now, there’s not going to be an immediate vote on this thing, but we do have to work this,” retired General Wesley Clark said of the Toomey-Feinstein effort. Clark, co-chair of the ethanol lobbying group, Growth Energy, visited with Agriculture.com shortly before delivering his keynote speech to members of the Iowa Renewable Fuels Association.
Another ethanol industry leader, Renewable Fuels Association president Bob Dinneen (who wasn’t at the Iowa meeting Tuesday) told Agriculture.com recently that he didn’t expect the Toomey-Feinstein amendment to get a vote.
“I think [Senate Majority Leader Mitch] McConnell and the Republican leadership understand this is an issue that divides the caucus,” Dinneen said. Both parties have supporters and opponents of ethanol, which could make changing the RFS a challenge for opponents in the oil industry.
Yet farm group lobbyists who who spoke at the meeting Tuesday were hardly complacent about the RFS.
“For sure we will see a vote this year in the Senate on some kind of RFS reform,” predicted Amanda De Jong, senior policy adviser at the Iowa Corn Growers Association.
A bill or amendment to completely repeal the RFS would be easier to defeat than one that would weaken the RFS with some kind of reform, said De Jong, who has worked as a special assistant at USDA and as an agricultural adviser to Senator Chuck Grassley (R-IA).
“I think we’ll be able to protect that from passing in the Senate,” she said.
Others predicted an ongoing battle because amendments to kill or weaken the RFS could be attached to one of several bills Congress will need to pass this year, said Catharine Ransom of the Glover Park Group and one-time staffer for former Senator Max Baucus (D-MT).
Ransom said that not only ethanol plant owners will need to contact members of Congress. So will farmers and others in agricultural industries.
Ransom said people ask her, “Well, I’ve talked to these people for the last five years. Do I need to do it again?”
“The answer is, yes.” Ransom said.
Besides urging Congress to continue its support for the RFS, ethanol leaders Tuesday urged Iowa members of the industry to attend next year’s presidential caucuses to support candidates who back the RFS.
Monte Shaw, executive director of the Iowa Renewable Fuels Association, urged everyone at the meeting to join a new bipartisan group, America’s Renewable Future. That organization will work to inform presidential candidates who visit the state about the importance of renewable fuels to the economy of Iowa and the nation.
Wesley Clark left no doubt that he sees renewable fuels as the key to reviving the U.S. economy.
Clark graduated first in his class at West Point and rose to the rank of four-star general as NATO’s Supreme Allied Commander, Europe.
Tuesday he outlined five challenges that this nation faces that are likely to be as difficult as the Cold War: terrorism, cybersecurity, an unstable global financial system, the rising military and economic power of China, and a changing climate.
“Those five challenges all have something in common. They’re all long-term,” Clark said.
“They require leadership,” he said, adding that right now the nation is badly divided politically.
“I think the way we come together is to rebuild the American economy,” said Clark, who ran for president as a Democrat in 2003.
Clark cited several ways to rebuild the economy, including educating more scientists and engineers. But that will take years.
“The quickest fix for the economy, believe it or not, is energy,” he said.
In 2008, America’s imports of oil contributed about $500 billion to the nation’s trade deficit, he said. This year, with falling oil prices, it will be about $100 billion.
“If we could keep that money in America’s economy, that would accelerate economic growth,” he said.
Clark is on the board of BNK Petroleum, an energy company focused mainly on shale gas in North America and Europe.
“We’re not going to be energy independent relying on oil alone,” Clark said.
Biofuels are sustainable, but shale oil wells are short-lived, he said. Production from typical wells using fracking technology declines between 70% and 90% in a year, he said. As oil companies slow down drilling in North Dakota and other oil states, 12 months from now, U.S. shale oil production “should be less, a lot less,” he said.
Another big oil producer, Russia, lags in technology and capital investment.
Clark didn’t predict how long the current low prices would last.
“The only sure thing anyone can say about the price of oil is that any prediction is going to be wrong,” he said.
Some are predicting $20-a-barrel crude.
“I think it’s possible but unlikely,” Clark said.
Clark said that part of the fall in crude oil prices “was fed by financial speculation.” Buyers of crude oil futures have been shorting the market, he suggested.
Even though demand for oil has fallen, one of the world’s biggest importers, China, is still growing at a rate of 7.5%, Clark added.
At some point, global production will be more in line with rising demand, and prices will go back up.
"The one thing you can be sure of is that the world demand for oil will increase," he said.
Ethanol and renewable fuels can make the U.S. economy stronger in that environment, he said, if ethanol and biofuels are allowed access to the market.
“And it starts right here,” Clark said to a round of applause.
Read the original story here : Ethanol Will Face RFS Threat
Jan 27, 2015
By Erin Voegele
Protec Fuel has announced two convenience stores in the Atlanta metro area are now offering E15, including a Mountain Express-Quick Stop Food Store in Marietta, Georgia, and the Mountain Express-Food Mart in Greensboro, Georgia. The stations will also sell E85 and B20. According to Protec Fuel, eight more stations near the metro area are set to offer the fuel soon.
The new E15 locations are part of Protec Fuel’s recently announced E15 rollout. In September, the company announced plans to open 28 stations offering E15 and E85 in the South and Southeast regions of the country. Protec has already opened three E15 locations in Florida. In December, the company announced that fuel stations in Sarasota, Florida, and Lake Wales, Florida, had begun to offer the ethanol blend. Earlier this month, a third Florida E15 location opened in North Miami.
According to the Renewable Fuels Association, E15 is now available at fuel stations in 16 states. In addition to the new locations in Georgia and Florida, the ethanol blend is also available in Kansas, Nebraska, South Dakota, North Dakota, Minnesota, Wisconsin, Iowa, Tennessee, Alabama, North Carolina, Michigan, Ohio, Illinois and Arkansas.
We are thrilled to see E15 continue to expand on America’s eastern seaboard,” said Bob Dinneen, president and CEO of the RFA. “E15’s expansion continues — reaching 16 states today — despite the misinformation being spread by Big Oil and its friends. It’s clear that gas stations in many states are embracing the true facts about E15 and ignoring Big Oil’s smoke and mirrors. We expect additional stations in more states to follow Georgia’s example and offer drivers low-cost, environmentally-friendly E15. Today is a great day for Georgia consumers.”
Growth Energy has also spoken out to congratulate Protec Fuel and Mountain Express on the new E15 locations. “Protec’s continual march to find new locations to offer E15 is to be commended and shows they are a leader in providing sustainable, homegrown fuel options to their consumers,” said Tom Buis, CEO of Growth Energy. “Clearly there is a strong demand for E15, as we continue to see new retailers offer it. One thing is clear – when consumers are given the choice, they will choose the higher performing, less expensive fuel that is better for their engines and our environment – one that creates jobs in America and reduces our dangerous dependence on foreign oil.”
Read the original story here : Protec Fuel : 2 Stations Now Offering E15 In Georgia
College of Science and Engineering
Jan 26, 2015
Using one of the largest supercomputers in the world, researchers led by a team from the University of Minnesota have identified material that could improve ethanol production.
In a statement from the university's College of Science and Engineering, it said it's researchers have found an all-silica zeolite that could change the ethanol / water separation process from a multi-step distillation process to a single-step adsorptive process. The team included researchers from Rice University.
Zeolites are materials used by biofuel and petrochemical refiners that act as sieves to sort, filter and trap chemical compunds, as well as catalyze chemical reactions necessary to produce and upgrade chemical feedstock from renewable and petroleum-based sources.
The all-silica zeolite used by researchers at the University of Minnesota was tested and synthesized in chemical engineering and materials science professor, Michael Tsapatis' lab.
Synthesizing zeolites in a lab can be a long and complicated process that can take months. However, researchers of the University of Minnesota and Rice University developed a complex computational screening process using a supercomputer from the Argonne National Laboratory that looked at thousands of zeolites in the virtual world and identified their performance for specific applications.
Read more here : U of M Researchers Find Materials To Improve Ethanol Production
Jan 22, 2015
By Timothy Cama
Iowa is launching a campaign aimed at making the federal ethanol mandate a central issue in the 2016 presidential campaign.
Iowa hosts the first party nominating contests of the election cycle and counts the ethanol mandate as one of its top policy priorities, since corn, which goes into making most ethanol, is grown throughout the state.
The officials and business interests behind the campaign dubbed America’s Renewable Future want to use Iowa’s presidential caucus in January 2016 to press candidates to “take a stand” on the Renewable Fuel Standard (RFS) and make it central to the race.
“Americans of both political parties know that a robust RFS creates jobs in America, reduces our dependency on foreign oil and offers more consumer choice,” Iowa Gov. Terry Branstad (R) said in a statement.
“The last time there was a wide open race for the presidential nomination in both parties was 2007, just as the RFS was beginning to take effect,” he said. “Since then, Iowa has built 17 new bio-refineries, doubled ethanol production, tripled biodiesel production, and launched commercial scale production of cellulosic ethanol with three brand new facilities.”
The supporters of the multimillion-dollar campaign say it is primarily an educational one, aimed at making sure that presidential candidates and the American public understand how important ethanol is to Iowa.
The group will also work to tell voters how various candidates feel about the renewable fuel policy.
The campaign comes at a critical time for ethanol. Opposition to the federal ethanol blending mandate is growing, among a group that includes the oil industry, some environmentalists, motorists and food interests.
Meanwhile, the Environmental Protection Agency is more than a year late in setting the ethanol blending level for 2014 and has only said that the mandate will come sometime this year.
Eric Branstad, the governor’s son and a former GOP operative, will run the campaign along with Derek Eadon, who worked for President Obama’s reelection campaign.
It will be co-chaired by former Lieutenant Gov. Patty Judge (D) and former state Rep. Annette Sweeney (R).
Read the original story here : Iowa Wants Ethanol Front And Center In 2016
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