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Congressman Collin Peterson

March 3, 2017

Press Release

Congressman Collin C. Peterson, D-Minn., yesterday joined a bipartisan group of lawmakers to introduce the Consumer and Fuel Retailer Choice Act. The legislation lifts the summertime ban on E15 gasoline, allowing the renewable fuel to be sold year-round.

The bill would grant a one-pound per square inch ethanol waiver for applicable Reid Vapor Pressure (RVP) limitations for fuel blends containing more than 10 percent ethanol between June 1 and September 15. The Environmental Protection Agency (EPA) currently prohibits E15 fuel sales in non-flex fuel vehicles during the summer months when most driving occurs due to fuel volatility limits.

“This bill is about reducing confusion for retailers and providing more fuel choices for consumers. This RVP fix is a common sense measure that grants the consistent sale of E15 at gas stations, a fuel that has become increasingly popular in Minnesota,” said Congressman Peterson.

Read the original press release: Peterson Statement: Consumer and Fuel Retailer Choice Act

Wednesday, 01 March 2017 11:58

Sheep and DDGS

February was National Lamb Month! And we took this annual opportunity to highlight the benefits that DDGS continue to provide within the sheep industry.

Tuesday, 28 February 2017 14:16

Melrose 1 Stop

423  2nd Ave SE
Melrose, MN 56352
(320) 256-3519
E15, E85
423 2nd Ave SE
Melrose,Minnesota
United States 56352


Tuesday, 28 February 2017 14:12

Coborn's Express (Isanti)

209 6th Avenue Northeast
Isanti, MN 55040
(763) 444-5884
E15, E30, E85

209 6th Avenue Northeast
Isanti,Minnesota
United States 55040


Tuesday, 28 February 2017 10:41

RFA Talking Ethanol Regs with Trump Adviser

Energy Ag Wired

February 28, 2017

By Cindy Zimmerman

Renewable Fuels Association (RFA) president and CEO Bob Dinneen says he has been talking with a special regulatory adviser to President Trump about how they might work together on regulatory changes to the Renewable Fuel Standard (RFS), but it involves compromising on the point of obligation issue.

Dinneen issued a statement regarding a call he received from “an official with the Trump administration,” identified as Carl Icahn, who owns CVR Refining. Dinneen says he was informed that “a pending executive order would change the point of obligation from refiners to position holders at the terminal, a potentially small increase in the number of obligated parties, but one which would distribute the obligation more equitably.”

“Despite our continued opposition to the move, we were told the executive order was not negotiable,” said Dinneen. RFA just submitted comments last week opposing the proposed change in point of obligation from refiners to blenders, while one of RFA’s largest members, Valero Energy, supports it – as does CVR Refining.

Dinneen would rather relent on the point of obligation to get a waiver allowing higher ethanol blends to be sold year round. “Our top priority this year is to ensure consumers have year-round access to E15 (15% ethanol) and we would like to Trump administration to help cut through the red tape on this unnecessary regulation,” he said. “We will continue to do everything we can to ensure consumers have access to the lowest cost, cleanest, highest octane source of fuel in the world, and to ensure a strong RFS is maintained.”

Press reports indicate this was the deal that was struck between RFA and Ichan, which was denounced by ethanol trade group Growth Energy. “Neither RFA nor Carl Icahn have the authority to strike a ‘deal.’ Mr. Icahn does not work for the U.S. government; he owns CVR Refining, which would profit directly from this change,” said Emily Skor, CEO of Growth Energy.

American Coalition for Ethanol Executive Vice President Brian Jennings also commented. “Despite rumors, this is not a done deal and not a take-it-or-leave-it scenario. Changing the RFS point of obligation and providing RVP relief will both require EPA rulemaking and public comments,” said Jennings. “The only clear winners in a deal to move the RFS point of obligation would be Carl Icahn and oil refiners like Valero.”

Read the original story: RFA Talking Ethanol Regs with Trump Adviser

Growth Energy

February 22, 2017

Press Release

Growth Energy today released an expert economic analysis that identifies numerous problems associated with changing the Renewable Fuel Standard (RFS) point of obligation. Growth Energy strongly supports EPA’s proposed denial to move the point of obligation.

“Changing the point of obligation would have a disastrous impact on the industry, retailers, and consumers,” Growth Energy CEO Emily Skor said.

“Shifting the financial and administrative burden to retailers and fuel distributors would result in a logistical and regulatory nightmare. Hundreds – if not thousands – of new parties would suddenly be required to demonstrate compliance. This would require new rules, new staff, new infrastructure, and years of recalibrating a program that already works, not to mention potential delays with annual renewable volume obligations (RVO)s. Changing the point of obligation would dramatically expand the number of new obligated parties including fuel marketers, convenience stores, truck stops, trucking companies, railroads, and even consumer service companies like FedEx and UPS.”

The analysis, conducted by Edgeworth Economics, is part of the association’s detailed comments, to the U.S. Environmental Protection Agency (EPA), which were filed today. Growth Energy’s comments and the analysis detail how a shift in point of obligation would be detrimental to growing the renewable fuels marketplace and would ultimately undermine an energy policy that has cut oil imports and reduced transportation-related emissions. A change to the point of obligation would limit consumer fueling options and would increase costs for consumers by stifling competition among market participants.

The analysis’ key findings include the following:

Shifting the point of obligation would have no impact on the incentives to invest in biofuel infrastructure or increase blending of renewable fuels.

Renewable Identification Number (RIN) values represent neither windfalls for blenders nor out-of-pocket costs for refiners.

RIN markets are, for the most part, operating efficiently and competitively; moreover, a change in the point of obligation would have no beneficial impact on those conditions.

Changing the point of obligation would have no impact on fraud in the RIN markets.

The petitioners’ proposal would result in an increase in the number of obligated parties and an increase in the overall administrative burden of the RFS.

“The RFS point of obligation must be preserved to ensure that fuel retailers continue to have the incentive to make the investments necessary to deliver renewable fuels that provide consumers with better, cleaner, and more affordable choices at the pump,” Skor added.

Read the original release: New Economic Analysis Exposes Problems with Changing the Renewable Fuel Standard Point of Obligation

Hooiser Ag Today

February 22, 2017

By Gary Truitt

The U.S. ethanol industry added $42.1 billion to the nation’s gross domestic product and supported nearly 340,000 jobs in 2016, according to a just released study. The report suggests that continued  growth of the renewables sector is the key to recovery  in the farm economy. Matt Merritt, with POET, the nation’s largest ethanol producer and operator of the majority of ethanol plants in Indiana, says the key to turning the current dismal farm economy around is growth in the ethanol sector, “Ethanol can play the most important role in overcoming the challenges that face rural America.”

Merritt points to history as his proof, “When the ethanol industry was growing and expanding, land prices were going up, corn prices were going up, that is when farm incomes were going up. I don’t think it is a coincidence that when the ethanol industry stopped growing that is when ag producers started facing their challenges.”

“The importance of the ethanol industry to agriculture and rural economies is particularly notable,” the study found. According to the analysis, the production and use of 15.25 billion gallons of ethanol last year also:

contributed nearly $14.4 billion to the U.S. economy from manufacturing;

added more than $22.5 billion in income for American households;

generated an estimated $4.9 billion in tax revenue to the Federal Treasury and $3.6 billion in revenue to state and local governments;

displaced 510 million barrels of imported oil, keeping $20.1 billion in the U.S. economy.

“As these figures show, growth of the U.S. ethanol industry clearly ripples throughout our economy,” said Renewable Fuels Association President and CEO Bob Dinneen. “Our industry produced nearly 340,000 jobs last year and displaced more than 500 million barrels of imported oil, bringing well-paid jobs to local communities that are helping a domestic energy industry. The footprint of the U.S. ethanol sector touches every consumer in every city. This study provides definitive proof that the U.S. ethanol industry is helping to power the country’s economic engine.”

“The ethanol industry is a strong contributor to the U.S. economy, bringing jobs and tax revenue, while helping to displace imported oil,” said Economist John Urbanchuk, the study’s author and a managing partner at ABF Economics. “Continued growth and expansion of the ethanol industry through new technologies and feedstocks will enhance the industry’s position as the original creator of green jobs, and will enable America to make further strides toward energy independence.”

Merritt urged all farmers to support renewable fuels as a way of bringing profitability back to the farm economy, “We are pushing e-15 into the marketplace. We need to get the product in front of consumer so they can see the great benefits.”  He added, while e-15 is slow to penetrate the Midwest, it is going very well in large East Coast gasoline markets.

Read the original story: Ethanol, the Key to Recovery of the Farm Economy

Ethanol Producer Magazine

February 22, 2017

By NATSO

As the U.S. EPA public comment period on the Renewable Fuel Standard closes today, truck stop owners' trade group, NATSO, is encouraged by the vast support to keep the current compliance structure under the RFS. NATSO, in collaboration with other industry stakeholders, has engaged a diverse group of more than 35 organizations and companies representing downstream blenders, fuel retailers, marketers and end users at the federal and state levels. These groups speak on behalf of a majority of the fuel sector, which opposes the shift.  

 “NATSO is heartened by the overwhelming number of stakeholders who are urging the EPA to keep the RFS compliance with refiners, importers and manufacturers,” said Lisa Mullings, president and CEO of NATSO. “We urge the EPA not to shift compliance onto thousands of small business fuel retailers, which would inject massive disruption into fuels markets and raise fuel prices, ultimately harming the economy and hard-working Americans.”

The RFS has been an ongoing point of contention between major players in the fuel industry. A handful of refiners and investors have petitioned the EPA to shift compliance requirements down the supply chain. Doing so would undercut the program’s efforts to sustain the use of renewable fuels in gasoline and diesel fuel. The current structure creates a strong incentive for blenders, retailers and marketers to integrate renewable fuels into the supply chain.

“The RFS is working as intended by creating stable gas prices and encouraging renewable fuels in our gas supply,” said Tim Columbus, general counsel of the National Association of Convenience Stores and SIGMA. “But if the EPA shifts compliance, it would unnecessarily complicate the program, needlessly disrupt the markets for motor fuels, and hurt consumers most.”

In addition to undermining the purpose of the program, this change would increase gas prices for consumers as downstream players’ ability to satisfy their obligations would be dictated by upstream counterparts, who have the leverage and incentive to raise prices. A recent Penn Schoen Berland (PSB) survey released earlier this year revealed that 86 percent of voters agree that a compliance shift would increase gas and diesel prices at the pump.

The change would also add significant compliance costs and burdens to freight shippers, which would ultimately raise the cost of consumer goods through higher shipping costs. For example, if the compliance changes, Class I railroads would need to expend between $112.5 million and $214 million just to acquire Renewable Identification Numbers (RINs) to comply with 2016 Renewable Volume Obligations (RVOs) – based on 2016 numbers. California’s enactment of the Low Carbon Fuel Standard is a cautionary tale. In light of the market’s experience in California, it would not be implausible for the railroads to have to pay between $260 million and $447 million more for fuel.

A diverse group of companies and associations submitted comments in support keeping the current compliance requirements.

Casey’s General Store, a convenience store chain headquartered in Iowa, with a total of 1,954 stores in 14 states throughout the Midwest, commissioned Northcoast Research to analyze its gasoline margins to address public commentary that it is making windfall RIN profits through the current RFS structure. In its comments to the EPA, Casey’s stated that the there is no explicit connection between Casey’s motor fuel profitability and RIN values. The company’s gross profit margin is a function of input costs (namely gasoline and ethanol), competitive factors, and RIN offsets. “The best ever gas margin performance at Casey’s was during the second quarter of the fiscal 2016 when it reached 24.7—yet the RIN component was only 0.9 cents,” the research concluded.

Chronister Oil Company, an independent fuel marketer and retailer that serves the central Illinois marketplace, also argued against claims that fuel retailers blend to make a profit. “We blend to reduce cost and remain competitive; the savings is passed directly to the consumer,” the company stated. “When one retailer changes the big price numbers in the sky, everyone changes their numbers as well. If one retailer has an advantage in price, it is leveraged to increase sales and take customers.”

Chronister also stated: “The petition to move the point of obligation has the retail reality all wrong: retailers pass on savings to consumers and the current RFS structure encourages the blending and consumption of renewable fuels. It does all that, and increases the choices consumers can make at the pump.”

Ethanol trade association Growth Energy commissioned Edgeworth Economics to address each of the petitioners’ arguments to change the point of obligation. Here are the conclusions:

-RIN values represent neither windfalls for blenders nor out-of-pocket costs for refiners (On the contrary, RIN values are largely passed on in the form of elevated blendstock or renewable fuel prices or discounts to finished fuel).

-Shifting the point of obligation would have no impact on the incentives to invest in biofuel infrastructure or increase blending of renewable fuels (There are nearly 650 retailers in 28 states offering E15 – a 500 percent increase over the retail availability one year ago – and we expect that number to grow significantly over the next two years).

-RIN markets are, for the most part, operating efficiently and competitively; moreover, a change in the point of obligation would have no beneficial impact on those conditions.

-Changing the point of obligation would have no impact on fraud in RIN markets.

-The petitioners’ proposal would result in an increase in the number of obligated parties and an increase in the overall administrative burden of the RFS (hundreds or even thousands of additional entities would become obligated parties).

NATSO, the trade association of America’s travel plaza and truckstop industry, representing more than 1,500 travel plazas and truckstops nationwide, argued that changing the point of obligation would hinder the program’s objective of displacing traditional fuel and replacing it with renewable substitutes to promote stable supply and prices, and:

-“…inject such massive disruption and uncertainty into fuels markets that retail fuel prices will inevitably skyrocket and the incentive for fuel marketers to integrate renewable fuels into their product lines will dissipate.” 

-“This will crush the very constituencies whose interests President Trump promised protect in order to benefit a narrow segment of the refining industry.”

-“What’s more, changing the point of obligation will impose exceedingly onerous and expensive burdens on EPA staff.”

-“As you consider the petitions to change the point of obligation under the RFS, we urge you to seek counsel from the EPA officials who have worked over the past decade to implement the program.”

As a supplement, NATSO is submitting an updated letter from the freight industry, which now includes the American Highway Users Alliance as a signatory with the Association of American Railroads, the American Short Line and Regional Railroad Association, the American Trucking Associations, and the Owner Operator Independent Drivers Association. The letter outlines the impact any changes to RFS compliance could have on end users.

Read the original story: Retailers, Marketers Urge EPA to Maintain Point of Obligation

Ethanol Producer Magazine

February 21, 2017

By Fuel Freedom Foundation

By 2050, there will be three billion light-duty vehicles (LDVs) on the road.  Even under the most optimistic forecast, alternative vehicles will account for — at best — 50 percent of the total worldwide fleet, leaving hundreds of millions of cars with internal combustion engines (ICE) still in operation. 

To illustrate the need to push aggressively for all possible solutions, Fuel Freedom Foundation launched its interactive model projecting the composition of the light duty fleet through 2050. It demonstrates that alternative vehicles alone won’t solve our problems related to transportation, air pollution and global oil demand.

A significant portion of the discussion on jobs, economic growth and the environment has focused on “the right solution” for transportation, with each side promoting its “one and only” solution. There’s an assumption by many that electric vehicles will overtake gas- and diesel-powered ICE cars in the next 20 years. The new user-interactive tool developed shows that this assumption is overly optimistic.

The tool consolidates research, data and assumptions from a wide variety of sources, including the International Energy Agency (IEA); Argonne National Laboratory; the U.S. Department of Energy; and the consulting firm IHS. The tool also is designed to be user-friendly, allowing people to input their own projections and assumptions to determine the size and composition of the global light-duty vehicle fleet through 2050.

“These findings have critical ramifications for consumers, automakers, legislators, and anyone working to solve our transportation problems,” said Joseph “Yossie” Hollander, founder and chairman of Fuel Freedom Foundation. “The likelihood that the world could double or triple oil production to meet this demand is in question. We cannot afford the risk of coming up short.”

To learn more, and to test the model yourself, visit: https://www.fuelfreedom.org/cars-in-2050/

Read the original story: US Drivers to Rely on Internal Combustion for Decades to Come

Novozymes

February 21, 2017

Press Release

Novozymes announces the launch of the Spirizyme® T Portfolio, an advanced suite of glucoamylase enzymes with trehalase and other yield enhancing activities that provide the most total sugar conversion in the industry.

Trehalase is an enzyme that converts trehalose, a type of sugar that cannot be fermented to ethanol, to glucose, which is easily fermentable. Trehalose makes up a significant part of the so-called DP2 peak, a measure of residual sugar in an ethanol plant. The more DP2 an ethanol plant can convert; the more ethanol it will produce.

Extensive plant trials of Spirizyme T showed that it reduced the amount of residual DP2 by up to 70 percent, the most in the industry. This would allow a 100 million gallons per year (MGY) plant to convert 11 million pounds of otherwise wasted sugar to approximately 700,000 gallons of additional ethanol per year. At current prices, this would add nearly $1 million in revenue for the plant.

Spirizyme T is available in three versions:

Spirizyme Ultra T has the best DP2 reduction vs. cost

Spirizyme Excel T has the lowest total residual sugar for short fermentation times

Spirizyme Achieve T has the greatest ability to reduce residual starch and sugar.    

“Reducing residual sugar is key to raise profitability at an ethanol plant. Don’t leave your sugar behind,” says Peter Halling, Vice President – Biofuel, at Novozymes. “The Spirizyme T portfolio provides significant DP2 reduction across the board and offers our customers choice. There are options for plants with specific operating conditions, and plants looking to achieve particular goals, such as shorter fermentation or increasing total yield.”

Maximizing potential with data and training

Novozymes Spirizyme T customers receive an extra layer of service through Novozymes’ Advanced Laboratory Services. A team of specialized scientists examine fermentation samples before and after plant trials to determine DP2 peaks and calculate trehalose conversion. Additional plant data are analyzed to identify areas where customers can operate their plant more efficiently.

Customers can get further support from Novozymes’ Bioenergy University, which provides customized education and training to help plant employees advance their skills and knowledge.

“Enzymes are only part of the equation. Analytical services and training can help turn plant data into actionable improvements”, added Peter Halling.

Spirizyme T will be available in North America immediately, followed by Latin America and Europe later in 2017. 

Novozymes will be present at the 2017 National Ethanol Conference in San Diego, CA from February 20-22. Come meet us at the Solutions Quarter.

What is DP2?

Ethanol is produced by the fermentation of sugar by yeast. Commercial production of fuel ethanol involves breakdown of starch in corn or other feedstocks into simple sugars, fermentation of these sugars by yeast, and finally recovery of the ethanol and byproducts (e.g. animal feed).

Unfermented sugars go to waste, and ethanol producers are therefore interested in technologies that increase efficiency. After fermentation, ethanol plant managers will run High-Performance Liquid Chromatography (HPLC) tests to measure the amount of residual sugar. The test measures four types of sugars: DP1 (single sugar chains such as glucose), DP2 (two-sugar chains such as trehalose), DP3 (3-sugar chains) and DP4 (everything else).

Reducing these sugar “peaks” is key to maximize ethanol production. At a typical ethanol plant, approx. 70 percent of DP2 is unfermentable trehalose, so by converting trehalose to a fermentable sugar you can increase yield considerably. That is what the enzyme trehalase does.

Read the original release: Novozymes Launches Advanced Enzymes to Increase Ethanol Yields and Plant Profits