August 2018

Advanced Fuel Dynamics, the leading manufacturer of performance flex fuel systems, released its PROFLEX Commander flex fuel system for multiple UTV applications. Available for major powersports manufacturers such as Polaris, Yamaha, Can-Am, and Textron, this system allows UTV-owners to install a hassle-free and ready-to-use fully flex fuel system for their off-road vehicle so they can immediately start making more power on E85 fuel.

Advanced Fuel Dynamics’ PROFLEX Commander turns a gasoline-powered vehicle into a flex fuel vehicle capable of running E85, gas, or any mixture of ethanol and gas. The PROFLEX Commander allows the user to run any fuel mixture without the need to adjust the tune or switch maps. The kits are installed through a simple bolt-on installation and are compatible with the vehicle’s factory or aftermarket tune.

Advanced Fuel Dynamics offers its PROFLEX Commander for a variety of powersports manufacturers. Specific applications include the 2008-2015 Polaris RZR 4 800 and RZR S 800, 2016 and up Yamaha YXZ1000R, Can-Am Commander 1000 and Textron Wildcat Sport 700 and Wildcat XX.

Each PROFLEX Commander system comes with the PROFLEX Commander unit, a Flex Fuel Sensor with fuel lines and fittings, and a wiring harness for each application. The kit also allows for smartphone connectivity through the PROFLEX Connect app, enabling the user to monitor ethanol content in real time.

For more information on the PROFLEX Commander fuel system and applications, please visit www.advancedfueldynamics.com. Each PROFLEX Commander kit is backed by a limited 12-month warranty and comes standard with all parts needed for installation.

Read the original press release: Advanced Fuel Dynamics Announces Performance Flex Fuel Systems For UTV Applications

Kwik Trip #937
2550 Hwy. 12 East
Willmar, MN  56201
E15 

The Gazette

August 13, 2018

By Erin Murphy

A visit from the federal government’s top environmental protection chief Monday did not ease the concerns of Iowa agricultural leaders.

Andrew Wheeler, who last month took over as administrator of the U.S. Environmental Protection Agency, discussed myriad issues Monday in a meeting with top Iowa government and industry leaders at the State Fair.

The chief topic was the Renewable Fuel Standard, the federal requirement that a certain amount of corn-based ethanol be blended into the nation’s fuel supply. Iowa leaders have expressed concern that various moves by President Donald Trump’s administration has weakened the mandate, thus dampening the demand for ethanol and other biofuels.

Wheeler said earlier Monday in an interview that the administration fully supports the letter and spirit of the mandate. But he also hedged on potential ways to preserve the mandate, leaving industry disappointed.

Under previous EPA administrator Scott Pruitt, the agency granted to some oil refineries waivers that allowed them to skirt the mandate.

Wheeler did not say the agency would cease the waiver process, only that he would provide more transparency to the waiver process.

“I know that’s been a point of contention,” Wheeler said during his interview with the Gazette-Lee Des Moines Bureau. “I want to provide more transparency about how we make those decisions.”

Industry leaders have called for year-round access to E15, an ethanol blend that is available only during summer, and for the agency to reallocate the millions of gallons that were lost as a result of previous agency actions.

Wheeler said the agency is “looking into” those proposals, saying he wants to be certain the agency has the legal authority to take such action.

He also indicated any approval of E15 for year-round access likely will be part of a package deal. Ag leaders say any concessions to the oil industry as part of any such deal will weaken the mandate.

Monte Shaw, executive director of the Iowa Renewable Fuels Association, said any such deal would not be greeted with approval from the renewable fuels industries.

Shaw was one of the industry leaders to meet with Wheeler at the State Fair.

“If you have a 15-billion (gallons mandated) RFS and every year you waive 1.5 billion gallons through the small refinery exemption, you really have a 13.5 billion (gallons mandated) RFS, which means you don’t have an RFS for corn ethanol because we already blended in the low 14 (million gallons),” Shaw said.

Gov. Kim Reynolds, Iowa ag secretary Mike Naig, 3rd District U.S. Rep. David Young and former Iowa Farm Bureau President Craig Lang also were among the dozens of government and industry leaders who attended the discussion with Wheeler.

Wheeler, in his interview with the bureau, said under his watch the agency will continue to examine ways to reduce regulations, and that a new rule regarding what small waterways are subject to federal regulations.

Ag groups pushed back against the rule under President Barack Obama’s administration, saying it was too broad and subjected farmers to regulation of small collections of water on their farms. Environmental groups warn softening the rule will make it more difficult to observe and punish pollution.

“We want to provide certainty on what is a wetland to the American public so you know without going to court,” Wheeler said.

Wheeler also said throughout his career he has been cognizant of costs associated with office expenses.

Pruitt resigned amid scrutiny of the agency’s spending under his watch, among other allegations.

“I can’t comment on any investigations,” Wheeler said, “but I always have been, throughout my career, cognizant about costs. And that’s continuing.”

Wheeler said any expenses over a certain threshold must be approved my multiple individuals, and all travel expenses are “scrutinized.”

Read the original article: EPA Chief Does Little to Calm Iowa Farmers' Fears

Ethanol Producer Magazine

August 9, 2018

By Erin Voegele

Gevo Inc. released second quarter financial results on Aug. 8, reporting a 28.9 percent increase in product sales when compared to the same period of last year, and discussing the company’s future plans.

“During the quarter we made very good progress in restructuring our balance sheet and on the business development front by securing our first commercial off-take agreement for our renewable alcohol-to-jet fuel,” said Patrick Gruber, CEO of Gevo. “We continue to make progress with our plan to improve our profitability through low-carbon ethanol, which we expect to reduce our net cash burn over time, and we continue to work to secure solid offtake agreements to support the buildout of our plant at Luverne for isobutanol, jet fuel and isooctane.  As a company, we believe our strengthened balance sheet should enable us to execute our plans.”

During an investor call, Gruber discussed the company’s plans to become profitable. He said that improving the Luverne, Minnesota, plant site will set the stage for low-carbon isobutanol, low-carbon jet fuel and low-carbon isooctane production. Along the way, he said the company intends to produce low-carbon ethanol. Gruber said the company expects to announce more detailed plans to improve plant economics soon, once timelines for equipment and other factors are pinned down.

Gevo reported the sale of its products increased by 28.9 percent during the second quarter, when compared to the same period of last year. The increase is primarily attributed to the increased production of ethanol and distillers grains.

Revenues for the second quarter reached $9.4 million, up from $7.5 million during the same period of last year. Gross loss was $1.3 million for the quarter, compared to a $2.2 million gross loss for the same quarter of last year. Loss from operations was $4.4 million, compared to a $6.2 million loss from operations during the second quarter of 2017. Non-CAPP cash EBITDA loss was $2.6 million, compared to a $4.4 million non-CAAP cash EBITDA loss during the same period of last year. Net loss for the quarter was $11.5 million, compared with a net loss of $10.2 million during the second quarter.

Read the original article: Gevo Discusses Future Expansion Plans for Luverne Plant Site

We’ve previously highlighted the benefits of incorporating DDGS in dairy, turkey, sheep, pork and chicken diets. Today, we take a look at DDGS diets for beef cattle.

Renewable Fuels Association

August 8, 2018

By Ann Lewis

U.S. ethanol exports totaled 151.5 million gallons (mg) in June—up 65% from the prior month and in line with the monthly average for 2018, according to government data released last week and analyzed by the Renewable Fuels Association (RFA). Brazil resumed its position as the largest export market with 35.7 mg (24% of total ethanol exports), nearly quadrupling its May volume. Canada was close on Brazil’s heels with 33.5 mg imported in June—up 5%—and securing 22% of the U.S. ethanol export market.

Seven of the top 10 export markets saw growth in June. Exports to India surged to 26.7 mg—more than four times the volume shipped in May and its second-largest monthly imports on record. For the second straight month, shipments to the Philippines nearly doubled, surging to a record high of 19.1 mg in June (13% market share). The Netherlands imported 11.4 mg for its largest volume in six months. A record 4.3 mg was exported to Malaysia, and Jamaica boosted its offtake to 3.1 mg. Among markets that saw a decrease in export volumes were South Korea (6.8 mg, down 19%), Colombia (3.7 mg, down 27%), and Mexico (1.9 mg, down 47%). Notably, after 27 straight months as a customer, Peru stepped out of the U.S. ethanol export market altogether following a record buy (12.7 mg) in May. Year-to-date U.S. ethanol exports stand at 927.7 mg, implying a record annualized total of 1.86 billion gallons.

Shipments of U.S. undenatured fuel ethanol in June rose 159% to 80.5 mg. Brazil was the top undenatured fuel ethanol customer at 32.6 mg (41% of all shipments). This was a 246% increase over May, but still only coming in at about half of its April purchases. India re-entered the marketplace with its strongest demand of the year, taking 18.8 mg (23% share). Record volumes of undenatured product were shipped to the Netherlands (9.8 mg, 12%) and Malaysia (3.7 mg, 5%). The Philippines—May’s top undenatured fuel customer—decreased its purchases by 13% to 8.2 mg (10%). These five largest markets accounted for over 90% of the U.S. undenatured fuel ethanol market in June.

June exports of U.S. denatured fuel ethanol expanded 15% to a three-month high of 58.3 mg. Top customer Canada took in half of all U.S. denatured fuel product at 30.4 mg. The Philippines entered the market after a quiet six months with 10.9 mg (19% market share). Sizable volumes also went to Colombia (3.7 mg, down 16%), Jamaica (3.1 mg, for a 22-month high), and Brazil (3.0 mg).

June sales of ethanol for non-fuel, non-beverage purposes grew 25% to the largest monthly volume on record. American shippers more than doubled exports of denatured non-fuel product at 12.3 mg, besting the record set seven months ago by over 3 mg. India accounted for two-thirds of the export market at 7.9 mg. Canada decreased its purchases by 9% to 2.9 mg, losing its grip as our largest customer for the first time in nine months. Most of the remaining denatured, non-fuel exports headed to South Korea (1.4 mg). Shipments of undenatured non-fuel product winnowed down 95% to just 335,031 gallons, the lowest volume in 14 months. Top importers were South Korea and Mexico.

June was essentially absent of any fuel ethanol imports. As a result, just 1.6 mg of Brazilian ethanol has entered the United States in the first half of 2018, according to the monthly data.

American exports of dried distillers grains with solubles (DDGS)—the animal feed co-product generated by dry mill ethanol plants—improved by 4% to reach a 16-month high of 1.035 million metric tons (mt) in June. Exports shipped south of the border to Mexico increased 28% to 186,989 mt (18% market share). That volume was enough to surpass Turkey as the top customer; still, Turkey imported 175,030 mt (17% market share). Shipments to South Korea (103,357 mt) and Vietnam (78,157 mt) contracted by 17% and 13%, respectively. Indonesia (64,614 mt) and Thailand (63,909 mt) were other sizable markets. Year-to-date exports stand at 5.67 million mt, implying an annualized total of 11.33 million mt. If realized, distillers grains exports would yield a three-year high.

Read the original article: U.S. Ethanol Shipments Rebound as Brazil and Canada Vie for the Top Spot; DDGS Shipments Push Higher

Ethanol Producer Magazine

August 7, 2018

By the U.S. Grains Council

The U.S. Grains Council and ethanol industry partners added an octane enhancer to the USDA’s Agricultural Trade Mission to Indonesia in July, led by USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney.

The Council delegation joined the larger mission to Indonesia to follow-up on the productive discussions at the Ethanol Summit of the Asia-Pacific (ESOTAP) this spring, then traveled separately to Vietnam to meet with industry and ministry leaders there.

The Indonesian government has had an ethanol policy in place since 2006, but the mandate has largely gone unmet. Indonesia currently imports half of its gasoline demand, and the government has set a goal for renewables to represent 23 percent of the country’s energy mix by 2025 and to reduce greenhouse gas (GHG) emissions by 29 percent by 2030. Importing a lower-cost form of octane, ethanol, could help Indonesia secure these achievements by reducing the use of aromatics.

“On the books, Indonesia has goals to ratchet up ethanol blends in its fuel supply from 2 percent to 5 percent and eventually 10 percent,” said Manuel Sanchez, USGC regional director for Southeast Asia. “To date, however, Indonesia has blended almost no ethanol, despite global availability and the potential for immediate cost savings.”

Instead, the Indonesian government has instituted import restrictions and high tariff rates for ethanol and ethanol products inconsistent with those for gasoline or aromatics. As a result, the Council delegation met with Indonesian ministry officials to highlight the benefits of increased ethanol use in terms of air quality and GHG emission reductions and the importance of a policy with a role for trade in developing a consistent supply of ethanol.

The delegation also highlighted the competitiveness of U.S. ethanol as an octane enhancer compared to MTBE (methyl tertiary-butyl ether) and other aromatics, such as benzene, toluene and xylene. Substituting ethanol for aromatics also reduces ultrafine particulate matter, which is nanoscale sized and comprises the bulk of airborne particulate matter. This type of particulate matter can penetrate deep within the lungs and enter the bloodstream, making it a major respiratory healthy concern, especially for children and young adults.

“Reducing market access barriers is a critical component of the Council’s engagement,” Sanchez said. “Regulatory hurdles impede Indonesia’s ability to capture the societal and cost-saving benefits generated by increased ethanol use.”

Other markets in Southeast Asia are already implementing policies that work toward accomplishing the goals of open trade and achieving the full range of economic, environmental and human health benefits associated with increased ethanol usage.

Vietnamese officials helped craft the guiding document the Council uses in its global ethanol promotion efforts—the Asia-Pacific Economic Cooperation (APEC) road map for best practices for creating and implementing ethanol policies with a role for trade. The country started offering E5 on Jan. 1, 2018, with a goal to move to E10 by 2020, as total gasoline consumption rates are expected to grow by nearly 10 percent annually. The Council delegation met with Vietnamese energy ministry officials, ethanol producers and oil industry members to learn more and offer their support for the country’s trade-friendly policies.

The Vietnamese ethanol industry expects to source some of the ethanol needed to fulfill these mandates domestically from local cassava producers. But, the government and industry are open to importing ethanol should domestic production fall short of feedstock needed to fulfill the mandate, as ethanol plants come back online or feedstock prices fluctuate.

“Vietnam has set ambitious targets for ethanol blending levels,” Sanchez said. “The government and industry are working through best practices in incentivizing consumers at the pump and ethanol blenders to support increased ethanol use – a major improvement from unsuccessful attempts nearly a decade ago and critical for successful implementation.”

Work in Vietnam and Indonesia offers a good example of the broad scope of the Council’s efforts to promote ethanol in Southeast Asia. From strong policies with a role from trade to regulatory barriers, Council delegations like the one in July aim to learn more about the specific needs of each individual market and how to pave the way for increased global ethanol usage.

Find the APEC ethanol roadmap here and more information on ESOTAP here.

Read the original article: USGC Joins USDA Trade Mission to Promote Ethanol

Ethanol Producer Magazine

August 3, 2018

By U.S. Grains Council

Increased global bioethanol use is only a well-constructed policy decision away in markets like Argentina and Chile. The U.S. Grains Council (USGC) traveled to both countries in June to investigate their existing ethanol markets and discover how new or improved ethanol policies could boost demand while opening the door to imports.

“New market development opportunities for ethanol continue to arise in the Western Hemisphere,” said Mike Dwyer, USGC chief economist and lead on ethanol promotion globally. “The Council is discussing with governments and industries how to meet increasing demand for fuel and achieve economic, environmental and human health benefits through the use of blending ethanol into their gasoline supplies.”

After participating in the Ethanol Summit of the Americas in Houston in October 2017 (an event sponsored by the Council and its domestic partners), another South American country, Bolivia, decided to dramatically boost its commitment to bioethanol by starting at E10 in January 2019 and rising to E25 by 2025. The Council decided to visit Argentina and Chile with the hope officials there would see the value of enacting similar policies but with substantially more gallons involved.

In Chile, inexperience using ethanol is hindering U.S. ethanol export opportunities. Government regulations do allow blending of ethanol into fuel between 2 and 5 percent. However, importers and domestic refiners have selected MTBE (methyl tertiary butyl ether)—a substance displaced by ethanol in the United States due to potential health effects in drinking water—as the preferred oxygenate based on a lack of knowledge of how to use ethanol and insufficient domestic feedstock production. As a result, Chile is the third largest user of MTBE in the region.

The Council delegation gauged interest in using ethanol as a biofuel in addition to investigating the major regulatory and technical obstacles to adopting a national ethanol program in Chile.

“Our meetings in Chile opened the door for future technical dialogues between the U.S. ethanol industry and Chilean refineries,” Dwyer said. “The use of ethanol could help the Chilean government fulfill fuel quality requirements and comply with Chilean environmental standards—all at a price economically advantageous to Chilean fuel blenders.”

Argentina, in contrast, has both an existing ethanol policy and domestic ethanol industry to supply octane for the 2.4 billion gallons of gasoline consumed annually. The biofuels program, established in 2006, has encouraged the development of a domestic industry that uses both corn and sugarcane as feedstock.

The current E12 blend results in 278 million gallons of ethanol consumption annually, pulled equally from both corn and sugarcane via a government quota.

The sugarcane industry has been unable to fill its portion of the ethanol quota in months preceding the harvesting season when supplies of sugarcane are at their lowest (May-June). Despite goals to increase plant capacity by up to 20 percent, the domestic ethanol industry in Argentina also has geographical constraints that limit sugarcane production in the northern region of the country. These dynamics led to temporary ethanol imports of 1.3 million gallons (5 million liters) in the second quarter of 2018 to compensate for the deficit in local sugarcane-based ethanol production.

In contrast, the country’s corn-based ethanol industry—with five refineries—could increase production but is awaiting the government to signal support before increasing infrastructure investment.

Policy changes could come by 2021, including price liberalization for ethanol. Ethanol producers are in discussions with the government regarding whether to move to the Brazilian model of flex-fuel vehicles that can use pure E100 hydrous or to stay with anhydrous ethanol blended with gasoline at a rate not to exceed a 27 percent blend.

The Council delegation explored how these projected changes could affect the future of the ethanol industry in Argentina. The group also planted the concept of adjusting these policies to allow for trade when domestic supplies of feedstock are short, allowing for consistency in fuel blending and stability that would support the domestic industry’s growth.

“The Council will continue strengthening relationships with the ethanol industry in Argentina and Chile,” Dwyer said. “We saw in these markets the importance of engagement on how to build a robust ethanol program with a role for trade when domestic ethanol supplies are insufficient. We would like them to see the United States as a reliable partner—both in terms of import supply to supplement domestic production and as a source of technical and policy advice as they seek to decarbonize their fuel markets in the years ahead.”

Read the original article: USGC Explores Potential Ethanol Demand in Chile and Argentina