Media
This month, we spotlight Willis of Minnesota, Inc, which is a unit of Willis Group Holdings, a leading global risk advisor, insurance and reinsurance broker. Read our interview with Brad Frankenstein, senior vice president for risk management services, below.
Q. Please tell us a bit about Willis of Minnesota, Inc.
A. Willis Group Holdings is a leading global risk advisor, insurance and reinsurance broker. With roots dating to 1828, Willis operates today on every continent with more than 18,000 employees in over 400 offices. Willis offers its clients superior expertise, teamwork, innovation and market-leading products and professional services in risk management and transfer. Our experts rank among the world’s leading authorities on analytics, modelling and mitigation strategies at the intersection of global commerce and extreme events. Willis is a publically held (WSH) Global Insurance Broker; with the Willis of Minnesota office being located near Highways 394 and 100 in Minneapolis.
Q. Please tell us about your company’s role within the ethanol industry and why the company is committed to supporting the ethanol industry now and into the future.
A. Willis of Minnesota has significant expertise in the Commodity and Biofuels space. Willis of Minnesota has been working with clients in the Biofuels space for 14 years and currently writes more than a quarter of the country’s 200 bio-refineries. With a blend of Safety and Loss Control Services, Willis is able to provide its clients with an integrated Insurance Risk Management program.
Q. From your perspective, what would you like fuel consumers to know about the ethanol industry and the fuel it produces?
A. Educating consumer that ethanol is a clean-burning and a high-octane motor fuel safe for engines, and higher blends are available and coming to the marketplace.
Q. What do you see as the ethanol industry’s biggest challenge?
A. The largest challenge ethanol faces is Big Oil’s negative media campaign against Ethanol.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. We see a bright but challenging future. Investment is needed by all vested partners to help support the campaign to promote and educate consumers about ethanol.
By Tim Rudnicki, Esq
The details might be complicated, but the overarching blueprint is straightforward: continue to grow the biofuels industry AND build out the biobased feedstock industry.
On the continuum of an industry's development, the biofuel industry in Minnesota is very young. Relative to other Minnesota industries, such as agriculture and mining, the biofuels industry is just getting started. Nevertheless, the latest economic analysis of the Minnesota-based biofuels industry finds it supports 48,506 jobs with wages close to $3 billion and has a total annual economic impact of approximately $11.7 billion. And today's Minnesota-based biofuels industry still has room to grow.
More than two years ago the United States Environmental Protection Agency approved the use of E15 (that's a blend of 15% ethanol and 85% petroleum gasoline) for use in vehicles from model year 2001 to the present. If we focused on the current law and if all the owners of those vehicles had access to and chose to use E15 (when it's available, they do indeed use it), Minnesota would nearly triple the amount of biofuel used within the State. That outcome would have spin off benefits for the biofuels industry, Minnesota consumers and the environment.
Who is the Minnesota biofuels industry? It's the men and women that live and work throughout Minnesota. Some of the more than 48,000 jobs supported by the industry include those who live and work in the metro area of Minneapolis and St. Paul as well as in Minnesota’s rural communities where the production plants are located. All these men and women provide a broad range of products and services. The products provided for the biofuels industry include, for example, renewable ingredients, enzymes, all the processing tanks and related production equipment. Similarly, the scope of services is broad. It covers, for instance, finance, transportation, communications and engineering to name a few.
In practical terms, Minnesota made biofuels support thousands of Minnesotans, keep energy dollars at home on Main Street and add to the vitality of rural communities.
How do consumers benefit from increased use of biofuels? The short answer is this: an ample supply of less expensive, renewable biofuels decreases the demand for more expensive finite petroleum. Biofuels helped Minnesota consumers save nearly $2 billion dollars in 2012 because biofuels, such as ethanol, held down the price of petroleum gasoline. Today, biofuels continue to hold down the price of petroleum gasoline. By keeping the bioeconomy blueprint focused on building up the existing biofuel industry, more renewable fuel will be available to continue holding down the price of gasoline. That’s good for people who live and work here in Minnesota.
What are the environmental benefits associated with expanding the use of existing biofuels in Minnesota? Briefly, studies by Argonne National Laboratory and other reputable science based organizations find ethanol made from corn starch has a lifecycle greenhouse gas emission (GHG) footprint that is up to 57% lower than petroleum. Even when counting the energy used to plant, cultivate, harvest, process and use biofuels, the GHG emissions for biofuels is significantly lower compared to petroleum. Right here, right now, nearly 85% of the vehicles on the highway today can be using a lower GHG fuel with existing vehicle technology. Regular engines in 2001 and newer vehicles can use E15, a 5% higher blend of ethanol compared to regular unleaded gasoline at most retail fuel stations. Let’s not forget that green plants are the best solar collectors, and its that renewable plant material that is used to make biofuels.
Where do biobased feedstocks, that displace petroleum, fit on the bioeconomy blueprint? Next to, not in place of, biofuels. The bioeconomy blueprint is not about picking one over the other, but instead building synergy between one and the other. A truly growth oriented and sustainable bioeconomy will focus on expanding the use of both biofuels and biobased feedstocks which can be used in paints, adhesives, inks and resins to name a few uses.
This basic blueprint is offered in the hope we can build upon the discussion now taking place in Minnesota. Let’s work together to find ways to expand the success in the biofuels industry and to build upon that success in ways that can further grow the biobased feed stock industry. If we do this the correct way, Minnesota will be a leader on this front. Most importantly, we can further improve the environment and quality of life for Minnesotans.
As always, direct any questions or comments to me This email address is being protected from spambots. You need JavaScript enabled to view it.
This month, we spotlight Merjent, a Minneapolis-based environmental consulting firm. Read our interview with Billy VonSee, Principal at Merjent, below.
Q. Please tell us about Merjent.
A. Merjent is an environmental consulting firm committed to serving the energy industry. We maintain our focus on the energy industry because we want to provide our clients with the best service possible, and the key to that level of service is understanding as much about their business activities as possible. This focus not only makes us efficient in providing customized services, but it also allows us to proactively address potential issues before they become a hindrance to our clients' business.
Night time stack testing by Merjent
Q. Please tell us about your company's role within the ethanol industry in Minnesota and why the company is committed to supporting the ethanol induystry now and in the future?
A. Merjent staff have been serving the Minnesota ethanol industry since 1999, including active membership in supporting organizations. Merjent believes in the industry's vision of a robust, renewable supply of transportation fuel, and we also understand the value of supporting local business, both direct and indirectly.
Q. From your perspective, what would you like consumers to know about the ethanol industry and the fuel it produces?
A. Minnesota ethanol plants have been producing fuel ethanol for more thant two decades. This is not a brand new fuel, and billions of miles have been driven on ethanol blends. Consumers deserve choices, and we support the ethanol industry in its production of a viable clean-burning alternative.
Q. What do you think is needed for the availability of E15 to grow?
A. For E15 to become more available and grow, it needs to be placed into the fuel market on a large scale. Challenges limiting E15 market share include requirements under EPA's partial waiver and the current Renewable Fuel Standard regulations.
Q. What do you see as the ethanol industry's biggest challenge?
A. The biggest challenge to the ethanol industry is market development. Ethanol is economical, but the market was developed for a single source of fuel starting more than a century ago. Such a developed market is not easy to change without a serious shift in supply or demand (or both). The challenge will be to figure out what will cause that shift (e.g., changes in demand based on price, engine manufacturers approving its use, greater presence at the pump, etc.)
Q. What does your company see for the future of ethanol and advanced biofuels?
A. For the next decade, we see the industry focusing on increasing market share and improvements to existing production facilities for (1) adding value added co-products, (2) adding technologies like cellulosic biofuel, and (3) increasing efficiency.
Stack testing during winter
This month, we spotlight Solenis, a global specialty chemical supplier. Read our interview with Allen. M. Ziegler, director of global biorefining and marketing at Solenis.
Q. Please tell us about Solenis.
A. Solenis is the new company formed via the recent purchase of Ashland Water Technologies, formally a commercial business unit of Ashland Inc., by the private equity firm Clayton, Dubilier & Rice. Solenis, rooted in “solutions” and “genesis,” underscoring the company’s mission to be at the source – genesis – of solutions for customers.
This standalone company continues a 94-year reputation as a respected manufacturer of specialty chemicals for biorefining, pulp, paper, oil & gas, chemical processing, mining, power and municipal markets.
Headquartered in Wilmington, Delaware, Solenis operates 30 manufacturing facilities strategically located around the globe and employs a team of 3,500 professionals in 118 countries across five continents. For additional information about Solenis, please visit www.solenis.com.
Q. Please tell us your company’s role within the ethanol industry in Minnesota and why the company is committed to supporting the ethanol industry now and in the future?
A. Solenis has designated Biorefining as one of the six specific market areas we will concentrate both research & development and commercial resources going forward. Specific patented/patent pending process chemistries currently in commercialization such as corn oil extraction aids, regulated scale inhibitors and new technologies slated for introduction in 2015 are the result of years of development work and financial commitment.
Q. From your perspective, what would you like consumers to know about the ethanol industry and the fuel it produces?
A. I have a unique perspective in that I have experience in the industry from that of an agriculture producer, investor and supplier to the industry. I cannot stress enough the economic and environmental significance this industry had provided and will continue to provide long into the future.
Q. What do you think is needed for the availability of E15 to grow?
A. Providing the consumer choice via blender pumps and in addition, regulation to allow retailers under the auspices of oil companies a pathway to provide.
Q. What do you see as the ethanol industry’s biggest challenge?
A. Volatility of demand.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. The global projected growth of biofuels to as far out as 2040 is healthy with advanced biofuels contributing a significant portion. Solenis process technologies in conjunction with the water treatment programs are designed to address - not only the current demands but anticipated regulatory, feedstock and water usage challenges.
This month we spotlight ERI Solutions, our latest vendor member. Read our interview with ERI Solutions president, Nathan Vander Griend, below.
Q. Please tell us about ERI Solutions.
A. ERI Solutions, Inc. is commonly known in the ethanol industry as the manager of the ethanol industry’s only group captive insurance program which is comprised of nearly 70 ethanol producer/shareholders spanning 20 states. In addition to providing the premier insurance program available to the industry, ERI also provides a variety of services designed to mitigate insurable and uninsurable risks of the ethanol industry by providing environmental compliance, carbon & sustainability modeling, health & safety, Process Safety Management (PSM), Non-Destructive Testing (NDT) and insurance risk management consulting services.
Image above : ERI Solutions' testing and inspection services
Q. Please tell us about your company’s role within the ethanol industry in Minnesota and why the company is committed to supporting the ethanol industry now and in the future?
A. ERI is involved with several ethanol producers in Minnesota in varying capacity. Some have qualified and are shareholder members of the captive program whereas others purchase some varying degree of our services on a standalone basis.
ERI is passionate about what we do, but we are also passionate about the ethanol industry and its success. We are part of the ethanol industry as it is the majority of what we do and who we service. Like ERI, most companies understand their businesses in and out, but do they understand your business in and out? Are they there to fight for you as a member of their industry or are they there to cut a deal and make a buck? ERI is committed not only to being financially involved in supporting various ethanol trade associations and initiatives, but also by actively participating in lobbying efforts to congress through fly-ins, letters to congress and promoting the truth about ethanol in every avenue possible.
Image above : ERI Solutions' audit and assessment services
Q. From your perspective, what would you like consumers to know about the ethanol industry and the fuel it produces?
A. I believe there are a three things that consumers should understand about ethanol that so often go overlooked – The value of ethanol from an octane standpoint, and the value of corn starch being converted to ethanol vs. being fed to livestock, and ethanol is often not the culprit of small engine issues or issues with rubber or plastic component deterioration.
Octane Value of Ethanol: Ethanol and toluene (a known toxic aromatic in gasoline) are both used to increase octane in motor fuel. It takes 1 part ethanol to replace 2 parts of toluene.
Corn Starch – Ethanol or Feed: All ethanol producers are doing is using the starch, a portion of a kernel of corn that has little to no nutritional value to ruminants such as cattle.
Small Engine & Plastic/Rubber Component Issues: When testing fuel lines and other plastic components found in small engines, aromatics found in gasoline are the culprit, NOT ethanol.
Q. What do you think is needed for the availability of E15 to grow?
A. There are several challenges for E15 to grow, but the challenge I believe to present the greatest threat to adoption of E15 is the EPA’s seemingly blatant attempts to make higher ethanol blends look worse in studies/models such as the EPAct study which is the base data for the MOVES2014 (Motor Vehicle Emissions Simulator) model. This model shows that when ethanol is added to gasoline, emissions actually go up. It’s easy to see when you review the study that in fact the only way you can make emissions go up when you add ethanol is by changing the characteristics of the gasoline in the “new blend.”
Q. What do you see as the ethanol industry’s biggest challenge?
A. From my perspective the biggest challenge without a doubt is misinformation about the industry. Like many, if not all of you being from the Midwest we have morals and values that often tells us that what is right will always prevail. I often hear the popular saying, “The truth will prevail!” We all want to believe that, but our opponents are well funded, and the truth can be vailed for an awful long time if enough money is thrown at it. We need to continue to be unique and relentless with our approach.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. It is hard to say exactly what we see at this point. With the attacks on the RFS it makes for an interesting environment. No doubt the technology exists to disprove the myth that cellulosic can’t be done, but our uncertainty is if the EPA and Government will stand their ground on the decisions they made that so many are relying on to make the significant investments to move forward with advanced technologies.
This month, we spotlight Boulay, which is a renowned accounting firm with strong ties to the biofuels industry. Read our interview with Jadin Bragg, partner at Boulay, below.
Q. Please tell us about Boulay.
A. Boulay works with individuals, closely-held businesses, nonprofit organizations and public companies who are, or who aspire to be, successful. Our focus is to protect your business, build your wealth and secure your future by partnering with you and integrating our depth of experience in accounting, tax and financial consulting services designed to “help you get there.”
Founded in 1934 by Joseph A. Boulay, today our team consists of 29 partners and over 125 employees in Eden Prairie, MN. We’ve experienced a long history of consistent growth and rank 11th in the Minneapolis/St. Paul Business Journal’s Book of Lists for accounting firms. We were also named a 2014 Best of the Best CPA firm by INSIDE Public Accounting.
Our professionals adhere to rigorous quality control policies and have a proud tradition of unqualified opinions in our peer reviews since the inception of the program in 1988. Again, we received an unqualified opinion and a rating of pass, the highest of the three potential opinions designated by the American Institute of Certified Public Accountants.
Boulay is a member of PrimeGlobal, one of the Top 5 largest associations of independent accounting firms in the world. Boulay’s membership offers clients access to trusted people who can help you get your business done around the world — anytime, anywhere, any way.
Q. Please tell us about your company’s role within the ethanol industry in Minnesota and why the company is committed to supporting the ethanol industry now and in the future?
A. The renewable fuels industry is a highly complex environment that requires a strong commitment to understanding the current environment along with seeing the long-term picture. We have been long-standing advocates of the industry, from grass roots efforts as an unknown energy alternative through today’s dramatic political, environmental and economic challenges. Since we started serving the renewable fuels industry in 1997, Boulay has served 50 private and public renewable energy clients representing approximately 2 billion gallons of potential capacity nationwide. Manufacturing and distribution embodies approximately 200 clients for our firm with more than 20 professionals dedicated to servicing the renewable fuels industry.
This experience allows us to bring tried and true practices and support to you through the following financial services:
- Assurance
- Accounting Advisory
- Business Consulting
- Employee Benefits
- ESOP
- Estate and Trust
- Public Company
- Tax
- Wealth Management
Specific services that may be of interest to ethanol companies include:
- Member Tax Consulting
- Cash Flow Forecasting
- RIN Attestation
- Strategic Planning
- Retreat Facilitation
Whether understanding the construction phase, start-up of the plant or production efficiencies, we will be there for you with the collective knowledge of our renewable energy team. We also have a wide network of contacts that we use to assist you in resolving intricate operating challenges.
Through our immersion in renewable energy we developed a unique knowledge of ethanol and other alternative energy sources that you won’t find with other firms. Our professionals are passionate about the industry and work with producers to find tax incentives and other financial strategies that best serve your business. At Boulay, our clients’ goals are our goals, which is why we are committed to serving the ethanol industry and “helping you get there.”
Q. From your perspective, what would you like consumers to know about the ethanol industry and the fuel it produces?
A. Since 1997, when Boulay began serving clients in the industry, technology has come a long way. The industry and the plants used to create ethanol continue to evolve to efficiently produce a product that is a viable alternative to gasoline. The industry now uses less energy, water and other resources than ever before to create the same gallon of ethanol. It also gets more out of each bushel of corn as it converts into not just ethanol, but also oil and animal feed.
Q. What do you think is needed for the availability of E15 to grow?
A. In order for E15 to grow, consumers need to have the ability to choose a blend at the pump. This expansion of infrastructure will lead to increasing demand and to further acceptance in the marketplace. Pricing and value will drive consumer demand.
Q. What do you see as the ethanol industry’s biggest challenge?
A. Dealing with the influence of fuel prices, commodity pricing, government support, limited supply of crop-based feed stocks and a limited distribution infrastructure are a few of the biggest challenges your industry faces. With these ongoing challenges, getting bogged down in financial reporting and tax compliance details is the last thing you have time for as an entrepreneur. That's why it's important to work with an entrepreneurial-minded professional services team who knows your industry and can help you navigate these pressures. With Boulay we know you'll experience:
- Genuine, thoughtful, cooperative partners
- Honest, down-to-earth, long-term relationships
- Listen first, help next approach
- Business advisors vs. transactional compliance providers
- Better service with more partner attention than national firms
- “Go the extra mile” mentality
We go beyond meeting your financial reporting matters and provide you sound business advice. When you want help understanding options and best practices regarding specific financial matters, you can count on your client service partner to weigh in with not only their knowledge and experience, but the collective expertise at Boulay.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. The future looks bright for the ethanol and advanced biofuels industry. Climate change, energy independence, and new tax incentives and subsidies are opening up new opportunities, and growing concerns about the environment and fossil fuel dependence will likely lead to an increase of ethanol and advanced biofuels production in years to come.
This month, we spotlight Tin Thanh Electricity Steam Industrial Corp- our first international vendor member -which has extensive experience in the renewable energy sector in Vietnam and recently established operations in Minnesota. We spoke to Khoa Tran, CEO of Tin Thanh, to find out more on the company's background, its plans in Minnesota and the biofuels industry in Vietnam.
Khoa Tran, CEO
Please tell us about the history of Tin Thanh Electricity Steam Industrial Corp.
With nearly 20 years of experience in the environment and energy industry, the Tin Thanh Group established Tin Thanh Industrial Electricity and Steam Limited Company in 2009 in Vietnam.
Since then, we have become a leading company in the renewable energy sector in Vietnam. We specialize in providing steam and heat from renewable materials such as corn, corn stover, agricultural waste, forestry waste and industrial waste to manufacturers in Vietnam.
We have supplied steam to companies such as Saigon Brewery, Carlsberg Brewery, Hanoi Brewery as well as Da Nang Rubber in Vietnam.
Following our experience and success in Vietnam, we established Tin Thanh Electricity Steam Industrial Corp in 2012 in Bloomington, MN.
Why did Tin Thanh choose to expand to Minnesota?
We chose to invest and expand to Minnesota because of the characteristics of its economy, agriculture industry, biofuel policies and taxation rates. We were particularly interested in Minnesota’s ethanol production capacity which averages 1 billion gallons annually. Moreover, Minnesota is also the fourth largest producer of corn in the country and we intend to use corn byproducts as fuel for steam and electricity generation.
In addition, the logging, pulpwood processing, forest product manufacturing and paper production industries are strong in Minnesota. The abundant amount of sawdust, wood shavings and wood chips from these industries are suitable to be used as fuel for steam generation.
Last but not least, the large amounts of tires left for scrap in Minnesota can be recycled into industrial oil and used to generate power.
What projects is Tin Thanh currently working on in Minnesota?
We have signed a contract to provide steam for the Greater Development Corporation of Minnesota with a total capacity of 800 tons / hour. In 2014, we signed new steam supply contracts for a total capacity of 1,000 tons / hour. We plan on constructing and installing our new boilers in 2015.
Picture above : Tin Thanh's equipment
Please tell us how Tin Thanh intends to provide renewable energy to ethanol plants?
We will use a combination of fluidized bed boilers and biomass burners to provide steam to ethanol plants.
Picture above : Diagram of Tin Thanh's biomass burner connected to a boiler
This method produces steam from biomass which in turn reduces CO, NOx and SOx emissions. This also limits heat loss while the boiler system, which is cheaper to install than a conventional fluidized bed boiler, is more compact.
A common drawback of biomass boilers is the amount of particle matter that ends up being emitted but we’ve solved this problem by using electrostatic precipitators. This in turn complies with the EPA’s standards on dust particulate matter.
Is ethanol widely used in Vietnam?
The government of Vietnam has implemented a roadmap to introduce and subsequently increase the use of biofuels in transportation fuel. Since December 2014, biofuels have been available in seven cities and provinces in Vietnam including Ho Chi Minh City and Hanoi. By December 2015, biofuels are expected to be available nationwide.
Vietnam’s Ministry of Industry and Trade estimates the country will need some 6.88 billion liters (1.81 billion gallons) of ethanol in 2015 with volumes rising to 8.31 billion liters (2.91 billion gallons) by 2020.
The rollout of ethanol blended fuels is being undertaken by state-run PetroVietnam. Under the first phase of the rollout, E5 (gasoline containing 5 percent ethanol) will be available in the select cities. E10 will be introduced in seven localities from December 2016 and nationwide a year later.
Picture above : E5 sold in Vietnam