Media
Interview with William Popa, Director of Sales, North America for Beta Tec Hop Products
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. Beta Tec Hop Products is committed to the ethanol industry because our parent company is one of the largest growers of Hops in the world. BetaTec draws from the natural compounds found within the hops cone to produce a naturally derived substance that is used in the fuel ethanol industry to enhance yeast performance and efficiency. John I Haas has been farming Hops for over 100 years. John I Haas has developed into the largest grower, processor and manufacturer of Hop products in the World. John I Haas has Hop Farming operations in Europe, Australia, Asia, as well as North America. We are committed to this industry because we are a green company; our products are green for a green industry. We are proud to say our products are made in the USA and we are a farming company from rural America. The ethanol industry is a perfect fit for our company.
Q. From your perspective, what would you like fuel consumers to know about the ethanol industry and the fuel it produces?
A. I wish we had Blender pumps at every gas station in America. I think once consumers have greater choices they will find the best fuel option for their vehicle, based on price and performance. This choice and proven performance would eliminate all the negativity and false information being spread about ethanol and the ethanol industry.
Ethanol is here to stay because it is the only Octane source we have for our gasoline fuel for the automobile. As long as we use combustion engines for our automobiles, Ethanol as a source of Octane will be very important. The higher the Octane levels, the better the performance of the automobile. Oil companies will continue to clean out the dregs of their storage tanks, add ethanol to the dregs, and sell it as regular gas. This means ethanol is here to stay.
All our fleet vehicles at Beta Tec are Flex Fuel Vehicles and have operated without issue. When E-85 fuel is more than $0.32 cents cheaper than regular gas, our fleet saves money using E-85 fuel.
Q. How did your personal career path lead you to where you are now?
A. I joined Beta Tec Hop Products during the time when the ethanol industry was just starting to grow. We had 80 ethanol plants in operation and today we have 218 plants. I viewed this industry as an avenue to a career with much growth and stability.
This is a great industry to work in because of the people. Everyone has a story to tell. I tell everyone that a hand shake still means something in the ethanol industry. It is still a place where people work hard and take pride in their work. They strive to do the job right the first time. I enjoy the people and the friends I have made in the ethanol industry.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. We see tremendous growth potential again with our product line and the advancement of biofuels. Any plant that utilizes fermentation to make ethanol and needs to control gram positive bacteria will benefit in efficiency from using our product line.
The growth potential of advance biofuels in the future could dwarf the existing ethanol production industry as we know it today. With developing new technologies converting cellulose from sources like wood, grasses, beets or corn stocks into ethanol - this will make for strong growth in the industry. As advanced biofuels develop, the consumer will see lower fuel prices at the pump. Advanced biofuels will be the way we break our oil dependence from countries that do not like America.
JANUARY : HIGHWATER ETHANOL
FEBRUARY : HEARTLAND CORN PRODUCTS
MARCH : CHIPPEWA VALLEY ETHANOL COMPANY
APRIL : AL-CORN CLEAN FUEL
JUNE : CENTRAL MN ETHANOL CO-OP
JULY : GRANITE FALLS ENERGY
AUGUST : GUARDIAN ENERGY
Interview with Brian Kletscher, CEO of Highwater Ethanol.
Q. Tell us a bit about the history of Highwater Ethanol and how it has advanced into the operation it is today?
A. Highwater Ethanol was formed in May 2006. The construction process occurred from the fall of 2007 through June 2009. Highwater Ethanol, LLC constructed a 50 Million gallon ethanol facility in Lamberton Township, Lamberton, MN. The facility is located 1 mile west of Lamberton, MN along US Hwy 14 and the CP/Dakota Minnesota & Eastern Railroad.
In August 2009, Highwater Ethanol ground its first bushel of corn and produced its first gallon of ethanol. We currently produce at the rate of 57 million gallons of denatured ethanol per year. Highwater Ethanol produces approximately 145,000 tons of DDG {Dried Distillers Grains} and approximately 100,000 tons of MDG {Modified Distillers Grains}.
Highwater Ethanol is expected to operate 24 hours per day, 7 days per week, 365 days per year; with scheduled shut downs for routine maintenance. Highwater Ethanol, LLC currently employs 40 full time employees. The ethanol plant is a state of the art facility built by Fagen/ICM with technology to control dust and noise. Before Highwater Ethanol was able to start building, the plant needed a wide variety of environmental protection permits that are required by the State of Minnesota.
These permits include air emissions, NPDES, and above ground storage tanks administered by the Minnesota Pollution Control Agency. Water appropriation permits were administered by the Minnesota Department of Natural Resources.
Q. How did your personal interest in ethanol begin?
A. I have always been involved in the Ag industry. Farming for 30 years in Redwood County, MN as well as serving as a Redwood County Commissioner from 1997 - 2008. My 30 years of corn and soybean farming and dealing with low market prices, led me to embrace the ethanol industry in the 1980s. I knew that we needed to utilize the corn that we produced to generate additional economic development locally, rather than shipping the corn out of the region. I believe in the State of Minnesota, we have been successful in accomplishing this.
Q. How did you advance this interest to develop into the career you have now?
A. In 2006 when we started Highwater Ethanol, I lead the development of Highwater Ethanol and served as its President from 2006 - October 2008. On November 1, 2008 I began as the CEO.
Q. What do you see as the biggest threats to the ethanol industry in Minnesota in the next year?
A. The biggest threats will be in relationship to Federal and State government decisions on the use of biofuels. Also, changing the perception that ethanol produced from corn is not environmentally friendly. We know how to grow corn in Minnesota and the United States. Let’s make sure we continue to support corn-based ethanol. My fear is that if corn-based ethanol does not survive, that no new biofuels will be able to survive. Corn-based ethanol is the nucleus of ethanol and biofuels. All new technology always seems to be five years out; we are going on eight years since I first heard that.
Q. Next five years?
A. In the next five years we will need to make sure the biofuels industry is strong. That allows financing to become better available for the growth of the biofuels industry. Federal and State governments need to give assurance to the current industry that we will continue to utilize biofuels now and into the future. We have developed a great renewable fuels industry. Being able to obtain EPA approval for tested renewable fuels will be vital if we intend on growing the biofuels industry.
Q. What do you view as the three most important things you can do as a CEO to ensure the continued success of the Highwater Ethanol plant?
A. Maintaining operational efficiencies is important for our business, so that we are able to produce more ethanol from the same bushel of corn. Maintaining an excellent staff where each member knows their job and is doing it very well is important. Maintaining business relationships with consumers, vendors, and banks are all vital to our business.
Q. What would you like consumers to know about your plant, your employees, and the products produced by the plant?
A. Our plant is a very efficient facility. We produce approximately 2.897 gallons of denatured ethanol per bushel of corn. We utilize approximately only .646 kw hours per gallon of ethanol produced, 23,790 btu per gallon produced and 2.15 gallons of water per gallon produced. We are a clean facility where each employee knows their job and does it well. This has allowed us to gain the efficiency that is needed to maintain operations. The employees are all very well trained. Each takes extreme pride in their job and the facility. We are proud to produce a renewable fuel that is consumed everyday in the State of Minnesota. We are proud to be a part of an industry that can produce a product from corn that is grown right in our region.
Q. Regarding the local economy in the Lamberton area, what impact do you feel Highwater Ethanol has in the area?
A. Highwater Ethanol has potentially increased corn prices in the area between $.07 -$.10 per bushel. Spread that over 19 million bushels and that is $1.3 million dollars per year. In addition our plant has a payroll of nearly 2 million dollars per year. We feel that the impact is very beneficial for the Lamberton area.
Q. What role do you see local and state elected officials playing in keeping the ethanol strong and moving forward into the future?
A. As a prior local elected official, I know the direct impact that government decision making can have on a business. The State of Minnesota has the opportunity to put Minnesota in the lead of biofuels production again by fostering the use of ethanol and other biofuels. We have E15 in the palm of our hands and we have not been able to foster its introduction into this state.
We will continue to press hard on this. I believe elected officials can better understand the biofuels industry by touring a facility and gaining firsthand knowledge on how biofuels are produced, where they are produced and the capabilities that ethanol has in regard to displacing non-renewable oil/ gasoline.
Q. In your opinion, how does renewable fuels energy policy on a federal level impact what happens here in Minnesota?
A. Federal policies impact how ethanol and other biofuels are utilized in the United States, which does affect Minnesota. Both the EPA’s approval of fuels and the RFS 2 standards affect where biofuels are produced and what quantity of biofuels are being used or imported/exported.
Q. How do you see “second generation” or “advanced biofuel” technology meshing together with Minnesota’s existing biofuel plants and infrastructure?
A. The opportunity for additional technology is here right now. There are facilities at this time reviewing technology that may allow those facilities to produce a different product or a combination of products. The meshing of technology is a logical step, as current facilities have infrastructure in place such as natural gas, electricity, storage tanks, roads and other related items. We will need to walk together as we review new technology and the capabilities that it may bring in the future.
By Tim Rudnicki, Esq.
The business case for E15 is compelling. On June 18, the Minnesota Bio-Fuels Association hosted a seminar on the business case for E15 and E85. A diverse group of fuel supply chain stakeholders participated in the seminar. Included among the participants were retailers, service and equipment suppliers and State officials from the Minnesota Pollution Control Agency and the Minnesota Department of Commerce Weights and Measures Division. A major take away from the seminar was the strong evidence that supports the growing move by fuel retailers to offer their customers E15.
Most individuals associated with the fuel supply chain probably know about the many benefits E15 offers consumers. Perhaps two of the most appealing consumer benefits associated with E15 is its price and performance. Based on local information, E15 has been selling for $.10-$.20 below the price of a gallon of regular gasoline. Of course another important benefit is the performance of the fuel based on its octane rating. For less than the price of a gallon of regular gasoline, consumers can get 88 to 89 octane fuel.
These consumer benefits are fantastic, but what are the benefits for retailers? One of our guest presenters at the seminar was Robert White with the Renewable Fuels Association. Robert covered many topics that were germane to fuel retailers and others in the fuel supply chain including questions about E85, E15, fuel storage and dispensing options, renewable identification numbers, margins and much more. Rather than attempt to highlight all the many topics Robert addressed in nearly two hours, I will focus on just a few points.
For retailers contemplating offering E85 to customers, consider these points:
• Half of all vehicles produced by the top three auto manufacturers are flex fuel vehicles and more companies will be offering flex fuel vehicles;
• Retailers currently offering E85 are showing success with sales gains ranging from 300% to 327%;
• The latest consumer survey by the National Association of Convenience Stores shows 62% of those surveyed would consider a flex fuel vehicle; and
• Ethanol plants based right here in Minnesota can provide the type of local supply which helps lower costs, increases margins and lowers consumer price at the fuel dispenser.
Retailers can further expand their line of competitive product offerings with E15. Following 6 million miles of testing, the U.S. Environmental Protection Agency approved the use of E15 in all flex fuel vehicles and all non-flex fuel vehicles manufactured since 2001. That’s more than 8 of 10 vehicles on the highway today.
E15 continues to have a very positive impact with consumers and retailers. At present, E15 can be found in 12 states at 75 retail fuel stations. While the actual sales varies by station location, fuel retailers are generally finding E15 comprises 20% of overall sales with some stations averaging closer to 40%. E15 is actually bringing new customers to retail stations as evidenced by the overall increase in sales. Since E15 is a higher octane fuel that is typically priced less than E10 regular gasoline, it is an excellent value for consumers. In addition to the price benefit, there is the peace of mind that comes with knowing E15 now has over 75 million consumer miles of trouble free driving and the number of miles keeps growing!
What can a busy retailer or petroleum marketer do to take advantage of the business benefits of E15? We have a simple six step process that can be used to help you join the E15 club.
1. Review your equipment and fuel supply for E15 suitability.
2. Contact your marketing or branding and insurance company.
3. E15 can be sold as a pre-blended fuel or, using a blender pump, a retailer can actually blend their own E15. If a retailer will be blending E15 they need to comply with a misfueling mitigation plan. To do so is a very simple process which involves reviewing and adopting the model misfueling mitigation plan already prepared by the Renewable Fuels Association.
4. Register for a fuel survey at www.RFGSA.org .
5. Notify state regulatory officials such as the Minnesota Pollution Control Agency and Fire Marshal.
6. Once all of the above are addressed, place the proper orange and black E15 labels on the dispenser, as well as the octane label, and begin offering E15.
Retailers and petroleum marketers can contact the Minnesota Bio-Fuels Association for either a hard copy or electronic version of the Renewable Fuels Association’s E15 Retailer Handbook. The Handbook outlines all of the requirements and the steps to be followed to bring E15 to consumers and start a new revenue stream flowing.
In Minnesota many retailers have straightforward options to offer consumers E15 since their underground storage tanks, piping and dispenser systems are already compatible. Other retailers may require some additional components or to upgrade existing components. The first E15 station simply had to affix labels to the dispensers. Depending on the particular issues at each retail fuel site, a basic upgrade could cost from $1,200 to $4,200. Since each location has a unique set of factors to consider, you can contact the Minnesota Bio-Fuels Association for further information and details.
The momentum for E15 and E85 will continue to grow based on consumer interest and demand. According to a survey by the National Association of Convenience Stores, 26% of consumers knew what E15 is and 59% said they would try it. Some polling data after respondents were read a short description of E15 found a strong majority, 82%, said they support having it available at their local gas stations. Furthermore, approximately 76% of Americans would also support higher blends such as E20 and E30 at their local gas stations.
Here’s the bottom line for what it means for retailers and petroleum marketers to offer E15 or
E85 or both:
• More product choices for consumers on the same footprint.
• Typically uses existing storage tanks and pipes which is a huge cost savings.
• Minnesota-based ethanol plants can sell direct and thereby bypass the terminal markup.
• Flexibility for future approval of mid-level ethanol blends.
• Dispenser paid for by the sale of all products not just E85.
• Faster inventory turnover, protection against market swings.
• If the right equipment is purchased, you are E15 ready.
• Potential of renewable identification numbers.
• Differentiate your business.
• Increase overall fuel sales (the average regular unleaded sales are 87.2% while premium is 3% to 5%. E15 is averaging above 20% and E85 above 10%).
• Offer E15 or E85 or both because you can make a greater margin while lowering the consumer price at the pump, incentives are available now and you can increase overall instore sales.
For the full story on the momentum that continues to grow for E15 and E85, contact us here at the Minnesota Bio-Fuels Association. We can provide you with accurate and reliable information so you can make informed business decisions.
As always, direct any questions or comments to me This email address is being protected from spambots. You need JavaScript enabled to view it..
Interview with Scott Blumhoefer, Vice President of Heartland Corn Products.
Q. Could you tell us a bit about the Heartland Corn Products plant in Winthrop?
A. Heartland Corn Products is cooperatively owned by 900 local producers. Operations began in 1995 as a 10MM GPY facility and today operates at 100MM GPY. In addition to ethanol, Heartland produces DDGS, crude corn oil, and captures some CO2.
Q. As we know, ethanol production efficiencies have increased significantly in recent years. Could you please share where Heartland has made the most significant improvements since opening in 1995.
A. The industry has made many improvements over the past 10 to 15 years. As an example, Heartland has been able to reduce water usage down from over 6 gallons of water per gallon of ethanol produced to now just above 2 gallons of water. Natural gas and electrical usage are down 30% per gallon of ethanol produced since 1995. Ethanol yield per bushel of corn has increased over 7%.
Q. What is your professional background and what attracted you to work for Heartland Corn Products?
A. Prior to Heartland I spent about a dozen years in banking. Having grown up on a farm, I have always been drawn to agriculture and working for a community bank gave me the opportunity to remain close to producers. Heartland has given me the chance to be part of a company that has such a positive and direct impact on our local producer members. The industry is very interesting and dynamic.
Q. Tell us a bit about how Heartland Corn Products benefits the local economy in the Winthrop area?
A. As a cooperative, Heartland returns the majority of its earnings back to its members as patronage. Heartland’s members are local farmer producers, so value returned to members is spent primarily in surrounding communities.
Q. What are your feelings on the role of the Minnesota state government and how its policies affect the state’s ethanol producers? Are there policy changes you’d like to see that would greatly impact the Minnesota ethanol industry?
A. As the Minnesota ethanol industry has matured, the best policies, both State and Federal, would be those that do not inhibit growth and innovation that would be otherwise driven by the marketplace. All industries should be required to do their part to keep the environment safe for future generations, with assistance from agencies that share that same goal.
Q. Given that parts of Minnesota and of the U.S. are still under a strong drought, what steps is Heartland Corn Products taking to help ease the burden of elevated corn prices.
A. Heartland is structured as a delivery obligated cooperative, in that members are required to deliver corn for processing in relation to the number of shares that they own. Since inception, Heartland has been able to return back to members value for their corn delivered that has exceeded the average local market price. This has been the case in years of low and high priced corn markets.
Interview with Mike Jerke, general manager at Chippewa Valley Ethanol Company
Q. Please tell us a bit about why Chippewa Valley Ethanol Company (CVEC) was established and its history over the years. What makes CVEC unique?
A. Chippewa Valley Ethanol Company (CVEC) began as a dream between two Benson, Minnesota men more than two decades ago. John Carruth, a local farmer, and Ray Millet, the local electric cooperative manager. The two wanted to make the most of the area’s corn production while also stabilizing electricity rates. Their answer was Chippewa Valley Agrafuels Cooperative (CVAC), a group of more than 650 shareholders that included producers, elevators, and local investors.
CVAC became the general partner of the ethanol partnership (CVEC) and construction on the facility began in June 1995. The first bushel of corn was ground on April 26, 1996 marking the start of full operations at CVEC.
Originally conceived as a 15 million gallon per year facility, CVEC currently produces nearly 50 million gallons per year. It is still a small-town Minnesota company but has grown to 975 cooperative members; the majority of which live within a 50 mile radius of the plant.
CVEC has grown and diversified into direct selling of E85, industrial ethanol production, and beverage (vodka) production. We count our culture of innovation as a significant strength that has led to solid returns for our member/owners.
In addition to our local efforts, we are member/owners of Renewable Products Marketing Group (RPMG) which is one of the premier ethanol and co-products marketing firms in North America. Located in Shakopee, Minnesota, RPMG is producer owned and focused on providing value back to its members.
Finally, we have ownership interest in four other ethanol facilities and continue to see strategic investments in production as a long term benefit to our shareholders.
Q. What has CVEC's impact been on the local economy and surrounding communities?
A. The direct effect our Company has had on the surrounding economy can be measured by the cash distributions that have been sent out thru the years. Since inception, CVEC has returned over $93 million to our members. Additionally, the Company employs 50 people and like other ethanol facilities utilizes numerous local businesses for services such as trucking, millwright, electrical work, miscellaneous business functions, and so forth.
Q. What do you see as the biggest threats to the ethanol industry in Minnesota in the short-term and in the long-term?
A. The biggest threat to the ethanol industry in Minnesota is complacency. Ethanol has revitalized our rural communities and provides a clean cost competitive alternative to air-polluting petroleum. We cannot lose sight of that or take it for granted. Unsubsidized ethanol is competing against petroleum, a product that recently ‘celebrated’ 100 years of taxpayer support. Oil subsidies continue to cost the taxpayer $4-5 billion every year.
It is certainly important that we continue to look for renewable alternative sources to replace our dependence on fossil fuels but we need to remember that the only viable solution currently is ethanol. Big Oil will use every opportunity to lull the American public into thinking there is no energy problem. If we are complacent, our neighbors and many allies will only hear the Big Oil message.
Q. What are your feelings on the role of the Minnesota state government and its policies affecting local ethanol producers? Are there policy changes you'd like to see that would greatly impact the Minnesota ethanol industry?
A. Minnesota needs to remember how to be a leader. In 2003, the State led the nation with the embracing of 10% ethanol in every gallon of gasoline. As an early adopter of E85, Minnesota boasts the highest number of retail stations providing E85 in the nation. Currently, the State Legislators are considering bill language to set aggressive targets for even more use of alternative transportation fuel. While all of that is good, as a State we have yet to aggressively roll out E15 as an option to the consumer. As the most vigorously tested fuel in history, there are no more federal barriers to E15 use in vehicles model year 2001 and newer. Yet in Minnesota, the State that led the way with higher ethanol blends, we do not yet see a collective effort to encourage and support the deployment of E15.
State government needs to focus itself on the collective good E15 represents and move the ball. We do not need to reinvent the wheel. What was once done with E85 can be replicated with E15. Let’s be a leader again. Or at the very least, try to catch up with Iowa.
Interview with Randall Doyal, CEO of Al-Corn Clean Fuel
Q. Where specifically has Al-Corn made the most significant improvements in production efficiencies since beginning production?
A. We started production in 1996. Our largest improvements are a 15% increase in ethanol yield per bushel, 30% decreases in natural gas and electricity per gallon, and a 240% decrease in water use per gallon. We continue to look for ways to improve yield, decrease energy and use less water.
Q. How long have you personally worked in the ethanol industry and what drew you to this career path?
A. I started in this industry in 1982. I was working as a carpenter, and got hired on to do construction at a small ethanol plant in my home town. When I arrived the first day I was walked through the one plant that was operating (another was under construction at that time). Then I was told that I was a “cooker”. Thankfully the “distiller” that was on duty showed me what I was supposed to do to produce batch cooks and fill a fermenter. But no one could tell me why exactly we followed the steps we followed. When I got off work that evening I went to the library at the local university and checked out just about every book I could find that talked about making alcohol, or fermentation, or even moonshining. That was my introduction to the industry that has been my home and my passion ever since.
Q. Please share the impact that you feel Al-Corn has on the local economy and surrounding communities?
A. There are some impacts that are easy to quantify. We are the largest tax payer in our community. That has immediate impact on our community. We have contributed to the success of our farmer members. I can see that in the upgrades of their equipment from small single axle trucks to multiple tractor/trailer rigs for delivering their corn. Seed and implement dealers love us. We create a multitude of jobs from the vendors that supply us to the construction firms that help build and repair our facilities to the truckers who transport our finished products like CO2, ethanol, DDGS (livestock feed), and corn oil.
Q. How do you explain to consumers the myth of “Food vs Fuel” surrounding grain-based ethanol production?
A. Ethanol production in the US does not use “food”. We use feed grain quality corn, corn that would have gone into feeding livestock. The process converts the starch portion of the kernel into ethanol and CO2. Some of the oil is recovered and is sold to make biodiesel or to feed livestock. The remaining portion of the kernel is concentrated into a high quality livestock feed that is high in protein and digestible nutrients. That product called Distillers Dried Grains with Solubles, DDGS, is sold into the livestock feeding market. So we are producing both fuel and feed, and we are not using food to do so.
Q. Lots of talk lately in the energy world about RIN credits (Renewable Identification Number and is a renewable fuel credit). What is your take on why there as been such a significant price spike for RIN credits?
A. RIN price spikes are completely due to the oil industry’s desire to limit access to market for ethanol. Ethanol producers are selling ethanol well below the rack (pretax) price of gasoline. Each gallon of ethanol sold by a producer has a RIN attached, at no additional cost. But the oil industry is rushing to buy additional RINs from nonobligated parties rather than allowing the entry of E15 to the market or correctly valuing and promoting E85. So the oil industry is effectively raising the cost of gasoline by more than a dime a gallon by their action, when we could allow more lower priced ethanol to enter the market and reduce consumer costs.
Expect this to continue, because it is clear that the oil industry does not want to lose any more market share to ethanol. They will cover their additional obligation by buying high priced RINs rather than blending lower cost ethanol. And they will definitely increase the fight to eliminate the Renewable Fuel Standard that creates the obligation. RFS sets definite targets for replacement of petroleum and is the law passed by Congress in 2007. The ethanol industry did its part to provide the product as the law required, but the oil industry has done virtually nothing to prepare for higher ethanol blends.
Q. How do you see “second generation” or “advanced biofuel” technology meshing together with Minnesota’s existing biofuel plants and infrastructure?
A. I have long been a believer that if cellulosic ethanol actually becomes viable, it will be adapted by the existing industry in relatively short order. We have always looked for ways to improve and expand on what we can do, and all of work toward increasing ethanol yield per bushel of corn we grind. Being able to use the pericarp, the fiber portion of the kernel, would increase that yield. Being able to process stover would significantly increase our total ethanol yield per acre, and that is another goal we strive for. By the way, with the sort of yield per acre many of our members achieve in a normal crop year, and with the yield efficiency we have here at the plant, we are already producing 600 gallons of fuel ethanol or more per acre.
Interview with Dana Persson, CEO/General Manager of Central MN Ethanol Co-op.
Q. What do you view as the most important things you can do as a general manager to ensure the continued success of Central MN Ethanol Co-op (CMEC) facility?
A. A challenge for the ethanol industry, like many other industries, is managing our margins. As a plant, we have little control over the price that we receive for the products we produce (ethanol, DDGS and corn oil) as the prices are dictated by the markets. The same is true for what we pay for our major inputs (corn and natural gas). As a team we work to properly manage the commodity risk that is inherent in the business and ensure that we are operating the plant at its optimal performance and peak efficiency. We have made significant improvements in operational efficiencies in the last couple of years and we will continue to do so into the future.
Q. How long have you personally worked in the ethanol industry and what was your path to your current position?
A. I started my career in the Grain and Farm Supply business managing locally owned cooperatives. In the middle 1990's I helped develop a "greenfield" fully integrated poultry operation selling egg products to companies in the food manufacturing and food service industry. We sold the company in 2009. I have been with CMEC and I have worked in the ethanol industry for the last two years.
Q. Please share the impact that you feel CMEC has on the local economy and surrounding communities?
A. We feel that employing local people is an important part of keeping a community vibrant. CMEC currently has 29 full time employees and 2 part time employees. CMEC supports many other local businesses in the area by purchasing goods and services from these companies. In addition, CMEC also provides benefits to the local agricultural industry as we provide a consistently competitive market for corn. CMEC's presence has improved our local corn basis and saves agricultural producers the expense of transporting their product greater distances.
Having been in the grain business for over 30 years, I have witnessed the effects of a weak agricultural economy firsthand and its direct impact on families, communities and the country at large. It was not that many years ago that farmers consistently sold their grain for a price that was well below what it cost the farmer to produce it. The result of this deficit was larger payments through government farm programs. More recently because of improved corn prices, government payments to farmers have decreased.
In my experience, rural areas have exported a lot of "brain power" from our local communities as our kids lost hope in careers in agriculture and sought their fortunes from non-ag industries. We hope that the impact of ethanol on the agricultural community provides the opportunity for young people to return to rural communities for jobs and possibly the opportunity to return to the family farm.
Q. What would you like consumers to know about your plant and the products produced by the plant?
A. In my opinion, one of the best kept secrets about the ethanol industry is the positive impact we have on the livestock industry. In addition to ethanol, one of the co-products from our ethanol production process is Dried Distillers Grains (DDGs) which are sold to livestock producers for feed. We sell this very high quality feed (protein content of 27-30% and fat content of 6-9%) at a discount to raw corn values. This allows livestock producers to displace higher cost ingredients and thereby reduce their overall feed costs substantially.
Q. Where are the biggest opportunities for ethanol in the next 10 years in your opinion?
A. Ethanol is extremely important since it is as an economical source of octane in fuels and an oxygenate replacement for MTBE. MTBE is fossil fuel derived and was banned because of its adverse health effects and pervasiveness in the environment. Future engines will require higher levels of octane to achieve better performance and economy required to meet new federal standards and ethanol can satisfy the requirements of those new engines.
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Interview with Steve Christensen, CEO/General Manager of Granite Falls Energy, LLC
Q. Please tell us a bit about the history of Granite Falls Energy and a bit about the plant as it operates today?
A: Granite Falls is a dry mill ethanol plant comprised of over 900 investors. Granite Falls Energy LLC began production in 2005 and today produces 65 million gallons of ethanol utilizing over 20 million bushels of locally grown and sourced corn . We produce distiller grains and also extract corn oil. We are located at the intersection of highway 212 and highway 23 and are served by the TC&W railway.
Q. Where specifically has Granite Falls Energy made the most significant improvements in production efficiencies since the facility opened?
A: We have increased production while at the same time reducing water usage. When we initially started we used 4 gallons of water per gallon of ethanol produced and today we are using 2 gallons of water per gallon of ethanol produced. A percentage of the water we use comes from collecting storm water runoff. We are also a zero discharge plant.
Q. How long have you personally worked in the ethanol industry and what is your professional background that brought you to your current position?
A. Prior to coming to GFE, I was the General Manager of Western Wisconsin Ethanol which began construction in 2005 and began producing ethanol in 2006.
Q. What do you view as the three most important things you can do as a general manager to ensure the continued success of the Granite Falls Energy facility?
A. I work to ensure that we are a low cost producer of ethanol, in a volatile commodity based business. Motivating the employees and providing them with information, training, and tools to achieve their duties. Providing an adequate return to our investors is an important goal too.
Q. Please share the impact that you feel Granite Falls Energy has on the local economy and surrounding communities?
A. We are purchasing corn from local farmers and also returning dividends to the local shareholders who have invested in the plant. Our plant provides 35 plus jobs to people living in the area, with competitive salaries and benefits. To support local businesses, we also purchase local goods and services that are used to maintain the plant, locally.
Q. How do you explain to consumers the "Food vs. Fuel" myth surrounding grain-based ethanol production?
A: First of all we produce distillers grains which are fed to livestock that comprise 1/3 of each bushel of corn. Second the price of corn comprises a very small amount of what the consumer pays for in finished products at the grocery store. Marketing, processing, wholesaling, distribution, and retailing account for more than 80 cents of every food dollar.
Q. What would you like consumers to know about your plant, your employees, and the products produced by the plant?
A: We provide local jobs in a rural community in a safe, environmentally responsible manner.
Q. Where are the biggest opportunities for ethanol in the next 10 years in your opinion?
A: The commitment by the government, both national and state, to support a renewable energy policy.
Q. What do you see as the biggest threats to the ethanol industry in Minnesota in the short term (next year) and in the long term?
A: Same as above - Threats to the renewable energy policy.
Q. What are your feelings on the role of the Minnesota state government and how its policies affect the state's ethanol producers? Are there policy changes you'd like to see that would greatly impact the Minnesota ethanol industry?
A: The State of Minnesota has been very supportive of ethanol. Our biggest challenge will be with regulations that affect our business and how we collaborate with policy makers through those changes without negatively affecting our business.
Q. In your opinion, how does renewable fuels energy policy on a federal level impact what happens here in Minnesota?
A: The Renewable Fuel Standard drives what happens across the nation, not just in Minnesota
Q. How do you see "second generation" or "advanced biofuel" technology meshing together with Minnesota's existing biofuel plants and infrastructure?
A: I think that they go hand-in-hand with current producers starting to utilize cellulosic feed stocks that can be used along with corn to produce ethanol. Cellulosic feesdstocks that may work well here in Minnesota include sugar beets and corn stover.
Interview with Tom Hanson, Vice President of Operations (left), and Dean Reder, Chief Financial Officer (right).
Q. Please tell us a bit about the history of Guardian Energy since opening in 2009 and how it operates today?
Reder: The Janesville, MN, ICM/Fagen 100 million gallons per year facility was one of the final designed and constructed facilities by US BioEnergy before their merger with Verasun. It was nearly complete when Verasun’s bankruptcy liquidation occurred. The facility was purchased in September 2009 by six farmer-owned ethanol companies that had worked together to form and develop Renewable Products Marketing Group (“RPMG”) based in Shakopee Minnesota. The plant quickly filled positions and started operations in November 2009.
The Company enjoys leadership from its ownership group that have been pioneers and leaders for the ethanol industry:
KAAPA Ethanol, LLC - Minden, NE
Heartland Corn Products - Winthrop, MN
Al-Corn Clean Fuel Cooperative - Claremont, MN
Chippewa Valley Ethanol Company - Benson, MN
Golden Grain Energy, LLC - Mason City, IA
Q. Where specifically has Guardian Energy made the most significant improvements in production efficiencies since the facility opened?
Hanson: Guardian Energy has converted the process to a zero liquid (water) discharge. One of the first production facilities to do so. Occasionally, the plant will utilize excess run-off rain water in its production to further reduce well water usage. The use of strong conservation and environmentally focused processes, and the facility’s state of the art water treatment system, have enabled the plant to generate each gallon of ethanol with less than 2 gallons of water.
Q. What do you view as the three most important things you can do to ensure the continued success of Guardian Energy?
Reder: We must stay focused on:
1. Maximizing efforts on the things we can control and hire good people to manage the areas that are out of our control
2. Continuously improving yield & efficiency while not cutting corners on safety
3. Enhancing shareholder value
These focal points align and interconnect in many areas.
We don’t control or exercise significant influence over the corn or ethanol markets. We can strive to develop good relationships with local farmers and elevators to make us the preferred place for them to sell their corn. We have state of the art grain receiving equipment to minimize “waiting times” and added 1 million bushels of grain storage to reduce the days that “we’re full”.
The empowered maintenance team and diligent preventative maintenance programs have enabled us to become a reliable source of ethanol for RPMG to market our products to customers that have come to rely on us as a source for them in tightening ethanol supply markets. Beyond the normal planned shutdown days (5-10) for cleaning and inspection the facility has had relatively few unplanned shut-downs. By doing these things we believe we receive fairly priced corn and receive the best price available on our ethanol.
Emphasizing yield improvement and energy usage reductions with a strong group of laboratory and production managers will continue to separate the leaders from the followers. We may not see ethanol demand exceed production capacity in the next few years resulting in thin margins. When margins are thin the only way to make a profit is maximize yield and energy efficiencies.
Realizing that our ownership group and their group of farmer-owners took a risk to purchase and operate our facility, we understand that we need to operate in a manner that will maximize returns to those owners in the current, near term and long term. Shareholder value over the long term should be maximized by making good economic decisions and treating farmers, employees, vendors, railroads, policy makers and advocates fairly and with the respect expected in rural communities. Earning and maintaining that respect will result in continued success at Guardian Energy.
Q. Consumers have been hearing about E15. How do you feel E15 impacts Minnesota and the fuel consumers in the state?
Reder: We believe E-15 will reduce the price at the pump for fuel consumers without impacting gas mileage. Over the last few years the price of ethanol has been considerably less than gas and has provided an octane boost when blended with gasoline. By blending an additional 5% of less expensive, high quality fuel, retail competition should pass on some of that savings to the end users. Burning more ethanol and less petroleum should improve air quality especially in the Twin Cities and surrounding communities. As E-15 gains market share, the increased demand will be met by Minnesota ethanol producers. That spurred activity should maintain the value that local farmers receive for their corn which historically has been reinvested in local economies.
Q. What would you like consumers to know about your plant, your employees, and the products produced by the plant?
Hanson: Guardian Energy employees are very proud to be a positive influence for their community bringing value to rural Minnesota. We take pride in processing corn from local farmers to provide a clean renewable fuel, corn oil used as an animal feed additive and biodiesel feedstock and a value added feed for livestock and poultry called Dried Distillers Grains.
The Guardian team is very involved in the community and and the team understands the importance of the benefits they provide for their neighbors since the materials and services needed for the ethanol facility are sourced from their neighbors.
Guardian Energy is focused on continually improving and utilizing new methods and new technologies that result in more efficient and more environmental friendly ways to produce a renewable liquid fuel.
Q. Where are the biggest opportunities for ethanol in the next 10 years in your opinion?
Reder: We believe there is an opportunity for growth of higher ethanol fuel blends within the United States in the next 10 years. Once the oil industry supported 10% blend wall is penetrated (torn down), E-15 will become common place. As US fuel economy standards increase, there is additional opportunity for higher octane fuels (E-20 or E-30) to run higher compression engines that auto manufacturers are indicating will be required to meet those standards.
We believe that new markets will develop for using the recently available in bulk scale commodities that are produced in the ethanol production process (distiller grains and corn oil). Often referred to as co-products, the distiller grains are primarily sold to beef and dairy cattle, swine and poultry markets as feed and the corn oil is used in poultry diets as well as a feed stock for bio-diesel production. We believe that additional “green products” will be developed from further refining these valuable co-products.
Q. What do you see as the biggest threats to the ethanol industry in Minnesota in the short term (next year) and in the long term?
Reder: The potential reversal of federal legislation originally designed to improve energy independence, clean the air and produce domestic jobs would threaten our industry. Ethanol is a less expensive, cleaner burning, higher octane fuel than petroleum based fuel. However, without certain protections, the oil industry has the resources to halt any further market penetration by renewable fuels and or exercising influence to regain 100% of the liquid fuel market in the United States. Failure of any state to adopt or promote federal renewable programs, like the EPA’s 2011 approval of the use of E-15 blends, adds another threat level to producers in those regions.
This month we spotlight Mankato-based AgStar Financial Services, which has provided financial services to the agriculture sector for over 90 years. Read our interview with Mark Schmidt, vice president of industry specialties at AgStar, below.
Q. Please tell us a little bit about AgStar?
A. AgStar Financial Services, ACA, headquartered in Mankato, Minn., employs more than 600 full-time team members. As part of the national Farm Credit System, AgStar has a public mission to serve 69 counties in Minnesota and northwest Wisconsin. AgStar’s industry specialization, client segments and market delivery systems result in diversification nationwide. With expertise in the corn, soybean, swine, dairy and bio-energy industries, AgStar has developed successful programs in loans, leases, crop insurance, tax services, accounting, consulting and rural home mortgages. As a value-added financial services cooperative, AgStar allocates patronage dividends to its 14,000 stockholders. AgStar is also committed to giving back to rural residents, organizations and communities through AgStar’s Fund for Rural America. Visit www.AgStar.com for more information.
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. AgStar became involved in the ethanol industry by providing finance to its existing producer clients who were looking for opportunities to invest in ethanol as a means to increase their returns, per acre of corn. Our future commitment to ethanol is aligned with this same strategy; our goal is to offer financing opportunities that keep our clients and rural America vital and healthy.AgStar’s diverse portfolio includes renewable fuels, grain, swine, dairy and cattle industries and we remain committed to each of these industries.
Q. From your perspective, what would you like fuel consumers to know about the ethanol industry and the fuel it produces?
A. The ethanol industry was created for multiple reasons including:
- clean the air
- reduce the U.S. demand on foreign oil imports and the need for the U.S. military to protect those interests as part of our national defense
- add value to America’s agriculture output, which will restore economic vitality to rural areas.
Moreover, locally, ethanol production does help consumers save money. Ethanol is the cheapest domestic and global source of octane for finished gasoline, cheap octane lowers the price of gas plus it adds volume to our gasoline supply. By adding volume to our nation’s transportation fuel supply; again, ethanol is helping put downward pressure on gas prices. The average American household is saving approximately $200-400 per year on gasoline because of ethanol's inclusion in the U.S. fuel supply.
Q. What do you see as the ethanol industry’s biggest challenge?
A. AgStar recognizes that agriculture is cyclical and global in nature. Each commodity sector encounters ups and downs as global economics change; ethanol economics are no different. It does not appear that ethanol producers in the U.S. will have a problem supplying the domestic needs of ethanol and octane. Rather it will be the economics of providing the supply that harbor the risk. Being able to survive economic downturns is the risk of all commodity production and building a strong balance sheet through effective cost management and profitability are the keys to surviving volatility in all commodities, including ethanol.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. AgStar believes in the future of ethanol as a valuable source of octane (biofuel) and feed stuffs. In addition, AgStar believes in the ability of the ethanol business to bring economic value to all producers and rural communities. Globally, ethanol has a bright future in regards to demand for ethanol and ethanol-related products as it’s a very productive and competitive source of supply.
By Tim Rudnicki, Esq.
Every runner has a set of tactics (or survival skills) they use to propel themselves across the
finish line. For me, when I’m running a marathon, one of my tactics is to keep looking forward.
The aim is to get far away from the starting line by putting my energy and focus on moving
toward and crossing the finish line up ahead. Many of us think the U.S. EPA should do the same
with respect to the Renewable Fuel Standard - Keep Looking Forward!
We are half way into the biofuel marathon and the U.S. EPA has proposed that we slow down
and then go backwards. What do I mean by this? Just as we are making progress in moving
toward the use of more biofuels (E85 for Flex Fuel Vehicles and E15 for all 2001 and newer
vehicles) the EPA has proposed a substantial reduction in the amount of biofuel to be used by
consumers in 2014.
The Renewable Fuel Standard (RFS), however, is a law that is intended to be a paced and ramped
up implementation of biofuel usage through the year 2022. Specifically, for 2014, Congress
directed that at least 18.15 billion gallons of biofuels (14.4 billion gallons from renewable fuel
such as ethanol) be used in the United States. That is a very clear mile post that has been known
by the petroleum industry, biofuel producers and the EPA for at least seven years!
The petroleum industry likes to say they can’t comply with the law because the amount of
gasoline being consumed is going down. Basic math and, according to the Energy Information
Administration, the total actual and projected fuel consumption in the United States tells us
otherwise. Just because the petroleum industry is comfortable with the E10 status quo, this is no
time for the EPA to look backwards, retreat and accept defeat. In fact, under the law, the Agency
has a clear duty to keep looking forward and to push even harder to reach the 2014 biofuel mile
post as well as the next one.
How can one conclude the EPA has a duty to “push” for the use of more biofuels? The law
explicitly requires the EPA to “ensure that transportation fuel sold or introduced into commerce
in the United States (except in noncontiguous States or territories), on an annual average basis,
contains at least the applicable volume of renewable fuel, advanced biofuel, cellulosic biofuel,
and biomass-based diesel, determined in accordance with” the Energy Independence and Security
Act of 2007. In other words, it is not an option for the EPA to capitulate to the petroleum
industry by reducing the amount of biofuel to be used in 2014. Instead, the EPA should accept
the renewable volume requirements in law and take proactive steps to ensure consumers have
greater access to more biofuels as intended by Congress.
Minnesota biofuel producers are doing their part to comply with the RFS, so to should the
petroleum industry and the EPA. Biofuel producers in Minnesota have made, and continue to
make, significant investments in their operations to meet the RFS requirements. This translates
into more clean, renewable biofuels that can and should be made available to consumers through
the petroleum infrastructure.
Any retreat the EPA makes from the gallon volume requirements of the black letter law will have
adverse environmental and economic impacts. Biofuels have lower carbon footprints compared
to petroleum gasoline. If the EPA proposal to reduce the amount of biofuels for 2014 moves
forward, more gasoline will be used instead of biofuels. The unintended consequence will be a
boost in greenhouse gas emissions. This situation is especially troubling as more highly carbon
intensive tar sands from the boreal forest in Alberta are used for fuel in the United States.
Biofuels also save consumers money at the pump. The Center for Agricultural and Rural
Development found biofuels, in the Midwest, held down the price of gasoline by approximately
$1.69 per gallon. If the EPA fails to comply with the law and slows down the pace of biofuel
usage, environmental and consumer benefits will be lost.
Will the EPA and White House listen to your voice? Thanks to many of you, thousands of
messages in support of biofuels and the RFS were sent to the Minnesota Congressional
Delegation, U.S. EPA and the White House. If the EPA heard you, the Agency will continue to
keep looking forward and implement the RFS as signed into law. With the EPA implementation
of the RFS as written, the economic, consumer and environmental benefits will move us, as a
Nation, closer to the next renewable fuel mile post. This will put us, as a Nation, well on the
path toward winning the biofuel marathon and a better environmental quality.
As always, I look forward to your This email address is being protected from spambots. You need JavaScript enabled to view it..
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.