In the News

Ethanol Producer Magazine

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

Ethanol Producer Magazine

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

Ethanol Producer Magazine

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

 

ICM Inc

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

 

Ethanol Producer Magazine

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

 

Renewable Fuels Association

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.dpuf

Reuters

Feb 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

Star Tribune

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