In the News

Ethanol Producer Magazine

Jul 29, 2020

U.S. ethanol production was up approximately 5.5 percent the week ending July 24, while weekly ending stocks of fuel ethanol increased by about 2.4 percent, according to data released by the U.S. Energy Information Administration on July 29.

U.S. ethanol production averaged approximately 958,000 barrels per day the week ending July 24, up from an average of 908,000 barrels per day the previous week. Ethanol production has been trending upward since hitting a low of 537,000 barrels per day the week ending April 24 due to market impacts caused by the COVID-19 pandemic. Production was down 73,000 barrels per day when compared to the same week of last year, and down 121,000 barrels per day when compared to the final week of February, before COVID-19 began to impact U.S. fuel markets.

Weekly U.S. ethanol ending stocks increased to 20.272 million barrels the week ending July 24, up from 19.801 million barrels the previous week. Stocks of fuel ethanol have fallen significantly over the past few months after reaching a record high of 27.689 million barrels the week ending April 17. When compared to the same week of last year, ethanol ending stocks were down 4.196 million barrels.

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SW News Media

Jul 28, 2020

The list of accomplishments and accolades for Larry Johnson — “The Ethanol Answer Man” and self-proclaimed “Governor of Gotha” — is quite long.

But a large number of his friends, family members and acquaintances can provide something even more impressive — testimonials about his high-caliber character and values.

“He lived by a certain set of values; hard work, honesty and integrity,” says Johnson’s oldest son, Adam Johnson of Belle Plaine. “He was very humble. He taught us kids to be humble and not brag about yourselves or look for compliments, but that your work would show that for you.”

Larry Johnson of rural Cologne, died July 19 from a stroke. He was 76.

“Dad was very rational in his decision-making; that he never made it with emotion,” Adam said. “He told us what we should hear, not always what we wanted to hear. That was constant. You never felt sorry for yourself.”

“He also told us if something is worth complaining about, it’s worth the time to solve it,” Adam continued. “People say those things, but he lived it; backing that up every day. He definitely was someone you looked up to and wanted to model your life after.”

That tenacity and resolve was a Larry Johnson trademark.

A lifelong resident of San Francisco Township, he grew up on the farm family. After graduating high school and a year of college, Larry focused his attention on farming, joining brother Jim in taking over the family farm and running a large turkey hatching egg operation and cash grain farm, particularly corn and soybeans.

Because of his farming experience, as well as nine years on the Minnesota Corn Growers Board and six years on the National Corn Growers Board, Johnson was well aware of ethanol and its values, particularly during the farm crisis of the 1980s.

“He listened to people; paid attention to what they were going through and became well versed on ethanol,” said his brother Cliff Johnson. “He not only became well known in the state, but became an international promoter and educator of ethanol.”

Larry Johnson started a consulting business in 1985, which led him to stop farming in 1988. One of his clients was the Minnesota Agriculture Department.

Johnson served the ethanol industry in many facets and his expertise led him to be dubbed ‘The Ethanol Answer Man.’ A van he used to travel the state was called ‘The Ethanol Answer Van.’

“He traveled all over the state, the country and the world with people recognizing him that way,” Cliff Johnson said, adding that Larry was very popular with farmers who visited him at a Minnesota State Fair booth. “He was always very dedicated to whatever he did, so he had answers to any questions people had about ethanol.”

Larry Johnson was a founder of the “Minnesota Ethanol Model,” a public/private partnership designed to provide jobs by keeping profits in local communities.

He served on many other county, state and national agriculture-related boards and organizations.

“Larry was one of ethanol’s most energetic and passionate advocates, said Brian Jennings, CEO of American Coalition for Ethanol, adding that Johnson had a “near-superhero status” in educating so many about the benefits of ethanol.

“He was a trusted advisor over the years, patiently teaching me about the history of ethanol, but also helping me understand the future of this industry as well,” Jennings said.

But there was plenty more to Larry Johnson than his massive ethanol knowledge, including, in part: efforts with West Union Lutheran Church, where he chaired the church council; mentoring young adults; and assisting community gardeners.

“He had a very full plate,” Adam Johnson said, emphasizing that his father’s top priority was his family. “He cared so deeply.”

And about Larry’s distinguished mustache?

“If you did something well, you’d see the mustache rise and a smile come out,” Adam said. “If it rised up and you saw his lip quivering, you were going to get a life lesson.”

Larry Johnson also was recognized as ‘The Governor of Gotha,’ when he routinely called in a weather report to a local radio station.

“That’s what he would call himself,” Cliff Johnson said. “Certainly not everyone knew where Gotha is, or was (near Cologne), but he had fun with it.”

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Ethanol Producer Magazine

Jul 28, 2020

The USDA recently released its Grain Crushings and Co-Products Production report for July, reporting that corn use for ethanol production was at 300 million bushels in May, up from the previous month, but down from May 2019.

Total corn consumed for alcohol and other uses was 354 million bushels in May, up 18 percent from April, but down 31 percent from May 2019. May usage included 89.4 percent for alcohol and 10.6 percent for other purposes.

Corn consumed for fuel alcohol reached 300 million bushels, up 22 percent from April, but down 35 percent when compared to May 2019. Corn consumed in May for dry milling fuel production and wet milling fuel production was 85.2 percent and 14.8 percent, respectively.

Sorghum consumed for fuel alcohol production fell to 2.047 million hundredweight (cwt) (114,632 tons) in May, down from 2.716 million cwt in April and down from 5.176 million cwt in May 2019.

At dry mills, condensed distillers solubles production was at 81,971 tons, up from 78,629 tons in April, but down from 115,995 tons in May 2019. Corn oil production was at 104,898 tons, up from 89,132 tons in April, but down from 157,623 tons in May of the previous year. Distillers dried grains production was at 205,750 tons, up from 173,465 tons in April, but down from 401,171 tons in May 2019. Distillers dried grains with solubles production was at 1.23 million tons, down from 1.01 million tons in April, but down from 1.94 million tons in May 2019. Distillers wet grains production fell to 696,152 tons, down from 696,475 tons in April and 1.36 million tons in May of the previous year. Modified distillers grains production fell to 242,264 tons, down from 274,285 tons in April and 456,572 tons in May 2019.

At wet mills, corn germ meal production fell to 64,200 tons, down from 51,929 tons in April and 68,852 tons in May 2019. Corn gluten feed production was at 291,064 tons, up from 231,145 tons in April, but down from 298,347 tons in May of the previous year. Corn gluten meal production was at 91,013 tons, up from 76,897 tons in April, but down from 93,185 tons in May 2019. Wet corn gluten feed production was at 224,695 tons in May, up from 188,258 tons in April, but down from 269,967 tons in May of the previous year.

Carbon dioxide captured at dry and wet mills fell to 149,453 tons, down from 162,926 tons in April and 235,559 tons in May 2019.

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Ethanol Producer Magazine

Jul 27, 2020

Legislation released by the U.S. Senate on July 27 could provide relief to biofuel producers impacted by the COVID-19 pandemic. A separate bill introduced on the same day aims to benefit workers who have lost their jobs as a result of the pandemic.

Senate Appropriations Committee Chairman Richard Shelby, R-Ala., on July 27 introduced an emergency supplemental appropriations bill that provides $306 billion in emergency appropriations to aid American families and businesses suffering from the COVID-19 pandemic. While the bill does not provide dedicated relief for biofuel producers, one provision of the bill provides $20 billion of additional funding to the USDA to support agricultural producers, growers and processors impacted by COVID-19.

That $20 billion funding would provide support for agricultural producers, growers, and processors impacted by COVID-19, including producers, growers and processors of specialty crops, non-specialty crops, dairy, livestock and poultry. Biofuel producers would be considered eligible entities under the program.

“This is a good first step towards healing the damage wrought by COVID-19, but falls short of providing the necessary clarity that would have been provided in Senators Ernst, Grassley and Klobuchar's proposed language," said Emily Skor, CEO of Growth Energy. "The next critical step in a final agreement between House and Senate is to provide additional certainty around the nature of biofuel industry relief to ensure our producers have access to this much needed assistance. Our fight is far from over, especially with the number of retroactive refinery exemption applications continuing to rise and COVID-19 depressing trade to our key ethanol markets abroad. It’s encouraging to know that we have House and Senate leaders in our corner who understand that protecting America’s biofuel workforce now is vital to rebuilding our nation’s agricultural supply chain and markets for American farmers.”

separate bill released by Senate Finance Committee Chairman Chuck Grassey, R-Iowa, would provide further relief for workers affected by COVID-19; assistance to individuals, families, and employers to reopen the economy; support for patients, nursing home residents, providers and foster youth in responding to COVID-19; additional flexibility and accountability for coronavirus relief fund payments and state tax certainty for employers and employees.

One section of that bill, would provide supplemental unemployment insurance payments of $200 per week through September. Starting in October, the payment would be replaced with a payment of up to $500, that when combined with the state unemployment insurance payment, would replace 70 percent of lost wages. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law in March, provides a $600 per week supplemental unemployment insurance payment through the end of July.

Another section of the bill would create a second recovery rebate payment of $1,200 to all U.S. citizens and U.S. residents with adjusted gross income up to $75,000. For married couples with gross income up to $150,000, the payment would be $2,400. An additional rebate of $500 per dependent would be available. The amount of the rebate would phase out completely for single filers that exceed $99,000 and joint filers with no children and income over $198,000.

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Biofuels International

Jul 24, 2020

The US Grains Council (USGC) has been engaging future export opportunities for distiller’s dried grains (DDG) to South East Asia.  

Thanks to extensive technical education and trade servicing by USGC staff, DDG is expanding its footprint in countries throughout the region. Vietnam, Indonesia and Thailand all rank in the top 10 buyers for the co-product. Other markets like the Philippines and Malaysia are also increasing interest and purchases of DDG and other corn co-products.  

“South East Asia is now the destination for one-third of all US DDG exports,” said Caleb Wurth, USGC assistant director of South East Asia. “The region will be one of the strongest performing markets for distiller's grains this marketing year, despite challenges related to movement restrictions, lack of available containers and new trade agreements signed between major markets and U.S. competitors.”  

The DDG tech talk series followed webinars focused on trade policy and challenges and opportunities in the region. The first talk was conducted in partnership with PAFMI (the Philippine Feed Mill Association) with technical staff of PAFMI member companies joining the webinar. PAFMI members represent the largest segment of the Philippine feed industry, making this partnership critical to expanding trade relationships in the country. 

“When designing the program, we wanted to address the top constraints to increased DDG usage in the Philippines,” Wurth said. “Leading examples were storage and handling followed by nutritional value awareness, which became our focus topics for the webinar.”  

The second talk was conducted with one of the largest feed millers in South East Asia, part of a new strategic partnership in the region. More than 60 decision-level participants logged in from all the company’s offices in South East Asia, South Asia and North Asia. 

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E & E News

Jul 22, 2020

After carving out a role as an "ethanol senator," Republican Sen. Chuck Grassley said yesterday he's not sure he's won much support even in his own party — but he's making an additional pitch to help the industry weather the pandemic.

Grassley, Iowa's senior senator, told reporters he and fellow Iowa Republican Sen. Joni Ernst are still pressing for pandemic-related aid for biofuel producers in the next coronavirus aid bill and that he wishes more lawmakers from corn-growing states would warm to the idea.

"We need help from others, and I expect that other people are going to help, but it seems like we have to be the instigators of it," Grassley said. Iowa is the country's top ethanol-producing state.

By Grassley's count, 14 states are considered big corn producers. With two senators each, he said, those states ought to generate 28 pro-biofuel votes in the chamber.

"I don't know why it always falls on Ernst and Grassley to be the only ones that presumably are ethanol senators," he said.

Grassley repeated his earlier calls for financial assistance to help biofuel producers who had to shut down or slow their plants during the early months of the pandemic. At one time, as much as half the nation's ethanol production was affected, and more than 130 plants either fully or partially shut down.

Asked if he believes biofuel producers should be given dollar-for-dollar parity with the oil industry — which benefited from government purchases for the Strategic Petroleum Reserve — Grassley said ethanol should be treated more generously.

"There ought to be more help for ethanol than for oil," Grassley said, because oil was cheap at the time the government helped that industry though SPR purchases.

Among the measures Grassley has sought: reimbursement to biofuel producers for feedstocks they bought between Jan. 1 and March 31. He introduced thatbillwith Sen. Amy Klobuchar (D-Minn.) in May, resurrecting a proposal he'd initially intended to add to a pandemic relief bill — but hadn't because oil industry relief wasn't included either.

The petroleum reserve purchases came through Trump administration actions instead.

Grassley's call for biofuel assistance is one of a few agriculture provisions he's pressing, including help for hog producers who lost money through forced depopulation of animals. That was a result of COVID-19 outbreaks forcing meatpacking plants to close.

Biofuel groups such as the Renewable Fuels Association continue to press for assistance, along with restrictions on EPA's ability to waive biofuel blending requirements for small refineries.

Prospects for biofuel aid aren't clear as the Republican leadership crafts a relief bill this week. And while Grassley said he doesn't think his party's leadership is much more friendly to ethanol than in previous years, the Democrats aren't any more receptive.

"I've got all sorts of quotes from Schumer, how he's anti-ethanol," Grassley said, referring to Senate Minority Leader Chuck Schumer (D-N.Y.), who's supporting Ernst's opponent, Theresa Greenfield, in a close reelection race this fall.

Despite Schumer's history against ethanol mandates, Democrats have tried to cast Ernst as not aggressive enough on biofuel issues, including prodding her to demand EPA Administrator Andrew Wheeler's resignation, as Greenfield has (E&E Daily, July 21).

"Don't put it on the shoulders of Republican leaders when Democratic leaders are fighting it," Grassley said. "It's not just a Republican problem."

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Whitefox Technologies

Jul 21, 2020

Whitefox continues growth in North America – now at 100 mmgy of installed capacity

Council Bluffs, IA – Whitefox Technologies, is pleased to announce Southwest Iowa Renewable Fuels (SIRE) has surpassed 250 days of operation of their Whitefox ICE® membrane dehydration system at its plant in Council Bluffs, Iowa. The start?up in September 2019 was Whitefox’s third in 2019, now Whitefox’s 8th installation in the U.S., and its second installation in Iowa. The first ICE® installation in the leading ethanol producing state was at Pine Lake Corn Processors in Steamboat Rock.

SIRE CEO Mike Jerke stated “We’ve had a lot of highlights at SIRE in the past year, and the Whitefox project has been one of them. The combination of benefits improves our plant operations and efficiency, and helps SIRE provide more value to the community and our shareholders. SIRE is in our best position ever to move forward and efficiently meet the demand for ethanol driven by increased use of higher blends.” Jerke recently wrote in an op?ed piece for the Des Moines Register: “Ethanol’s best days remain ahead of us… our industry and workers will always go above and beyond.”

Gillian Harrison, CEO of Whitefox CEO, commented “working with SIRE was a very positive experience for our team. Their professional culture and high standards start at the top and extend throughout the whole organization. I felt that our respective teams complimented each other well, getting the best out of the project. They were an excellent project partner from the start. We share Mike’s positive view of the industry; ethanol is a home?grown product that gives us cleaner air and Whitefox is committed to helping plants improve their profitability and reduce energy and emissions.”

The Whitefox ICE® system treats existing recycle streams to free up distillation?dehydration capacity, enabling SIRE and other producers to lower natural gas use by over 1,000 BTU/ gallon, cut carbon emissions, improve plant cooling, and increase potential production capacity by 20% or more depending on the system design. Whitefox ICE® is integrated into existing corn ethanol production plants with minimal disruption and a small footprint.

Paul, Kamp, Whitefox VP of Business Development added “SIRE has always been a plant with a unique vision for innovation and a strategic location. Working closely together with the SIRE plant team on project execution was a great experience and results are top notch. Together we achieved the initial target objectives for reduced steam use and higher production capacity potential. Almost immediately after start?up, their engineers and operators dialled?in improvements and BTU reductions across distillation and dehydration.”

About SIRE

Southwest Iowa Renewable Energy, LLC: SIRE is located on 275 acres in Council Bluffs, Iowa, operating a 140 million gallon per year ethanol plant. SIRE began producing ethanol in February 2009 and sells its ethanol, distillers’ grains, corn syrup, and corn oil in the continental United States, Mexico, and the Pacific Rim. SIRE is a Limited Liability Company incorporated in the State of Iowa on March 8, 2005. The owners of SIRE have positioned the Company to be a locally controlled business enterprise providing farmers and local investors with the chance to extract added value through ownership of a processing plant that converts local corn to higher value products.

About Whitefox Technologies Limited

Established in 2000, Whitefox Technologies is a leading solutions provider for fuel ethanol and other alcohol production processes. Specializing in technology development and process integration based on proprietary membrane solutions, its efficient designs reduce energy and water consumption in ethanol and organic chemical manufacturing processes. Whitefox provides solutions for fuel ethanol, other biofuels, and industrial alcohol production in the U.S., Canada, Europe, and South America. www.whitefox.com @WhitefoxTech

For further information:

Trond Heggenhougen

Whitefox Technologies

This email address is being protected from spambots. You need JavaScript enabled to view it.

+44 (0)20?7953?8408

Ethanol Producer Magazine

Jul 17, 2020

Sen. Chuck Grassley, R-Iowa, confirmed during a press call on July 17 that he and Sen. Joni Ernst, R-Iowa, will advocate for the inclusion of dedicated relief for ethanol producers the fourth COVID-19 stimulus bill, which Congress is expected to take up as soon as next week.

Grassley sponsored a bill introduced in Maythat would provide relief to ethanol producers via payments for feedstock made through the USDA’s Commodity Credit Corp. During the July 17 call, Grassley indicated he and Ernst would work to include provisions of that bill into the upcoming COVID-19 bill.

In the long-term, however, Grassley said he thinks that hope for the ethanol industry will be directly related to the extent to which the economy picks up and people start driving. While ethanol production has picked up in recent weeks following sharp declines in March and April, Grassley said he thinks it will be a slow turnaround for the industry to return to pre-COVID-19 production levels. “I think the Ernst-Grassley bill will help in that effort a lot, if we can get it put into the [upcoming COVID-19 relief bill],” he said.

Grassley also briefly addressed the “gap year” small refinery exemption (SRE) petitions that several small refineries have filed with the U.S. EPA in recent months in an effort to circumvent a January ruling made by the Tenth Circuit Court of Appeals that determined the EPA cannot extend SREs to any small refinery whose earlier, temporary exemptions had lapsed. The 58 gap year SRE petitions that have been submitted to the EPA so far represent an effort by several small refiners to create a continuous chain of SRE approvals that would allow the impacted refineries to maintain eligibility for future SREs.

Grassley discussed a conversation he and Ernst recently had with EPA Administrator Andrew Wheeler regarding the gap year waivers, noting that Wheeler said the agency is considering the waivers as required by law. Grassley also noted that Wheeler indicated the agency isn’t sure how it would provide relief for any approved gap year waivers. “We got the feeling they don’t know what to do about these, but they have to consider them,” Grassley said.   

He also briefly addressed comments made by Energy Secretary Dan Brouillette during a July 14 hearing held by the House Subcommittee on Energy.  During that hearing, Brouillettee was questioned on the gap year SRE petitions and the Department of Energy’s process to evaluate them. He confirmed that he will work with the DOE’s general council to ensure the analysis his agency is required to conduct is fully compliant with both the Tenth Circuit Court decision and federal statute.

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