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Welcome to the media section of our website. In this section, you will be able to find our latest press releases, letters to the editors, news concerning ethanol and biofuels, our executive director’s monthly column and Blogging For Biofuels, our blog on everything related to biofuels.
october 16, 2024, 12 - 1 PM
Holiday, 1035 County Road E E, Vadnais Heights, MN 55110
We will be at Holiday in Vadnais Heights on Wednesday, October 16, from 12 pm - 1 pm rewarding drivers who fuel up with Unleaded 88 (E15)! Prizes include $20 in cash, Target gift cards, Dairy Queen gift cards, Gopher Football merchandise and more! Read more here.
2025 INTERNATIONAL BIOMASS CONFERENCE & EXPO
March 18 - 20, 2025
Cobb Galleria Center, Atlanta, Georgia
Now in its 18th year, the International Biomass Conference & Expo is expected to bring together more than 900 attendees, 160 exhibitors and 65 speakers from more than 25 countries. It is the largest gathering of biomass professionals and academics in the world. The conference provides relevant content and unparalleled networking opportunities in a dynamic business-to-business environment. In addition to abundant networking opportunities, the largest biomass conference in the world is renowned for its outstanding programming—powered by Biomass Magazine–that maintains a strong focus on commercial-scale biomass production, new technology, and near-term research and development. Join us at the International Biomass Conference & Expo as we enter this new and exciting era in biomass energy.
SUSTAINABLE FUELS SUMMIT : SUSTAINABLE AVIATION FUEL & RENEWABLE DIESEL
June 9 - 11, 2025
CHI Health Center, Omaha, Nebraska
The Sustainable Fuels Summit: SAF, Renewable Diesel, and Biodiesel is a premier forum designed for producers of biodiesel, renewable diesel, and sustainable aviation fuel (SAF) to learn about cutting-edge process technologies, innovative techniques, and equipment to optimize existing production. Attendees will discover efficiencies that save money while increasing throughput and fuel quality. Produced by Biodiesel Magazine and SAF Magazine, this world-class event features premium content from technology providers, equipment vendors, consultants, engineers, and producers to advance discussions and foster an environment of collaboration and networking. Through engaging presentations, fruitful discussions, and compelling exhibitions, the summit aims to push the biomass-based diesel sector beyond its current limitations. Co-located with the International Fuel Ethanol Workshop & Expo, the Sustainable Fuels Summit conveniently harnesses the full potential of the integrated biofuels industries while providing a laser-like focus on processing methods that deliver tangible advantages to producers. Registration is free of charge for all employees of current biodiesel, renewable diesel, and SAF production facilities, from operators and maintenance personnel to board members and executives.
CARBON CAPTURE & STORAGE SUMMIT
June 9 - 11, 2025
CHI Health Center, Omaha, Nebraska
Capturing and storing carbon dioxide in underground wells has the potential to become the most consequential technological deployment in the history of the broader biofuels industry. Deploying effective carbon capture and storage at biofuels plants will cement ethanol and biodiesel as the lowest carbon liquid fuels commercially available in the marketplace. The Carbon Capture & Storage Summit will offer attendees a comprehensive look at the economics of carbon capture and storage, the infrastructure required to make it possible and the financial and marketplace impacts to participating producers.
INTERNATIONAL FUEL ETHANOL WORKSHOP & EXPO
June 9 - 11, 2025
Now in its 41st year, the FEW provides the ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. As the largest, longest running ethanol conference in the world, the FEW is renowned for its superb programming—powered by Ethanol Producer Magazine —that maintains a strong focus on commercial-scale ethanol production, new technology, and near-term research and development. The event draws more than 2,300 people from over 31 countries and from nearly every ethanol plant in the United States and Canada.
CHI Health Center, Omaha, Nebraska
On Jan 1, 2014, Stinson Morrison Hecker and Leonard, Street and Deinard completed a merger to become Stinson Leonard Street.
The newly merged entity combines expertise in various industries such as agribusiness and has been involved with the ethanol industry since 2000.
Below is an interview with Tom Jensen, partner at Stinson Leonard Street.
Tom Jensen Jill Radloff
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. Our firm first got involved in the ethanol industry back in 2000. At that time we helped a number of farmer-led groups take their newly-formed ethanol companies public and also helped a number of existing cooperatives convert to limited liability companies.
In both instances we handled all corporate and securities law matters for these companies. Since that time, both Jill Radloff and I, as well as many others in our firm, have continued to have strong ties to the ethanol industry.
We currently represent contractors, investors, owners, marketing groups and consultants to the ethanol industry.
Because of these strong current and historical ties, Stinson Leonard Street is strongly committed to the industry and its stakeholders.
Q. How did your personal career path lead you to where you are now?
A. In terms of our involvement with the ethanol industry, both Jill and I grew up in small towns and already had a personal connection to the agricultural community.
This background, coupled with our transactional legal practices, has positioned us and our firm well to serve the ethanol industry. It’s really been a good fit for us and our clients.
Q. From your perspective, what you would you like fuel consumers to know about the ethanol industry and the fuel it produces?
A. The ethanol industry is an important economic driver, especially here in the Midwest. And the people who make up the industry are strongly and personally committed to its success.
Q. What does your company see for the future of ethanol and advanced biofuels?
A. Continued consolidation is likely – including additional acquisitions by petroleum industry participants. We also see incremental and important technological advances on the horizon.
This month, we spotlight Minneapolis-based Barr-Engineering which provides engineering and environmental consulting services to Midwest, national and global clients.
We recently interviewed Chandler Taylor, senior environment consultant at Barr on the firm’s services, involvement in the ethanol industry as well as his views on the industry.
Q. Please tell us a bit about Barr Engineering
A. Barr provides engineering and environmental management and consulting services to help our clients solve complex problems related to the development, protection, and restoration of natural resources. Headquartered in Minneapolis, we are an employee-owned firm with more than 700 engineers, scientists, and technical support staff working with clients in the fuels, power, mining, and manufacturing industries, as well as with attorneys and municipal, state, and federal agencies.
We pride ourselves on solving our clients’ problems as if they were our own. Our employees share an enthusiasm for our work and a passion for working on some of the most complex and interesting environmental and engineering projects around. Our employee-retention rate far exceeds the industry average, in part because of the opportunities our clients provide for us to challenge ourselves and grow. We show our gratitude through dedication to their success.
Q. Please tell us your company’s history with the ethanol industry and why your company is committed to the development of ethanol in Minnesota?
A. Barr has been providing permitting and compliance support to ethanol plants since 2006. We support the top five producer plants and cooperatives. We regularly provide services at about 25 plants in seven states, including five plants in Minnesota. Those services include:
- environmental permitting and compliance for air, water, waste, tanks
- preparation of RFS2 alternative pathway petitions
- pre-acquisition due diligence
- post-acquisition alignment
- on-site environmental staffing
- stack testing
- spill prevention and response planning
- wetlands planning and design
- tank inspections
- environmental audits
- training
- groundwater monitoring
- noise monitoring
The regulatory environment for ethanol producers is complex at both state and federal level. With the industry’s opportunities and long-term success come obligations related to permitting, compliance and environmental performance. We are committed to helping our clients in the industry navigate those obligations in a way that maximizes operational flexibility and manages compliance risk. We want to help the innovators in this industry to be successful and support them in pursuing opportunities to develop their technologies and facilities.
Q. How did your personal career path lead you to where you are now?
A. I have been consulting on environmental issues for about 25 years. The first half of my career I focused on soil and groundwater investigations and cleanups. Since then, I have focused more on air quality permitting and compliance. In 2005, I had my first opportunity to work with an ethanol plant (an MBA member plant) on environmental planning, permitting and compliance projects. Since coming to Barr seven years ago, I have been working almost exclusively with corn ethanol and waste-to-fuels clients.
Q. From your perspective, what would you like consumers to know about the ethanol industry?
A. We have enjoyed the opportunity to work with the ethanol industry in Minnesota because we find that the plant owners, managers and operators are passionate about their plants and their industry, and they are committed to the goals of revitalizing the rural economy, protecting the environment, and enhancing fuel security. We also like that they are innovators, always looking for opportunities to increase production and energy efficiency, and seeking out market opportunities for new technologies and the next generation of biofuel production.
Q. What does your company see for the future of ethanol and biofuels?
A. We expect that the ethanol and biofuels industry in Minnesota will remain strong as we respond together to changing political and regulatory landscapes that continue to be more complex and more demanding of plant resources. This is compounded by the fact that agencies are unfamiliar with developing technologies and feedstocks in the industry, and those advancements will not fit cleanly into existing environmental permits and regulations. As the industry continues to evolve, it will be important for owners and operators to help shape, plan for, and be responsive to, new regulatory requirements. We will need to find creative solutions to sluggish regulatory processes that don’t keep pace with the development and cycle of business opportunities.
We appreciate the opportunity to be an MBA member, to develop relationships and find ways to work together with other members, and look forward to continuing to support the growth and development of the Minnesota biofuels industry.
More...
Pioneering Innovation: An Integrated Approach to the Biofuels Market. Interview with Todd Emslander, Ethanol Process Team member for U.S. Water.
Q: Please tell us a bit about U.S. Water.
A. U.S. Water was founded in the late 90s with one mission – to help customers find safe, economical, and environmentally sound solutions. Water and process management is not a "one size fits all" solution - it’s about finding the optimal solution for the facility. Issues vary depending on the plant, and U.S. Water believes your program should be as tailored to address the unique challenges your facility faces. We're experts in chemical, equipment, engineering and service so we understand mechanical, operational and chemical aspects of your water and process system, how one affects the other, and how to utilize each component to find the best solution for you. It’s this idea that has led us to become one of the fastest growing privately-held water treatment companies in the United States.
Q: Please tell us about your company’s history with the ethanol industry
A. In 2004, U.S Water developed an Ethanol Process Technologies team to bring continuous improvement to the biofuels industry through new technology. Our Ethanol Process Technologies team has been instrumental in developing customer solutions that address a variety of concerns including safety, variability control, risk / exposure mitigation, brand assurance, capital equipment integrity, yield, profitability, final ethanol quality and compliance.
In an industry where understanding the dynamics of operation and the balance of consequences impact your bottom line, we are a leader in providing start-up and ongoing services to over half of the biofuel industry. Part of the reason U.S. Water has seen so much success in the ethanol sector is our ability to find each customer a personalized solution by combining chemical, equipment, engineering and service into a seamless program that provides measurable immediate and long term return on investment. Our ability to understand and provide all of these faucets of their water and process applications means that we become solution neutral - we’re there as a partner to the facility.
Q: What does your company see for the future of ethanol and biofuels?
A. For U.S. Water it's really about looking at the system from beginning to end and eliminating the bottlenecks that affect quality, production and efficiency at their source rather than just treating the symptoms. Once we've eliminated the congestion and prevent it from happening further, it becomes a situation where the plant can focus on producing the best quality products and realizing maximum profitability.
Q: From your perspective, what would you like consumers to know about the ethanol industry?
A. Meeting compliance, especially for water discharge, has become difficult for many plants when faced with the growing restrictions being placed on discharge limitations around the nation. But with new technology and solutions, we have found ways to reduce water usage in producing ethanol. There are many opportunities for water conservation including recycle and reuse, reclamation and even zero liquid discharge (ZLD). For Bushmills Ethanol in Atwater, MN, ZLD was the best solution when provided with all the options by U.S. Water's Christian Hess. The system is expected to reduce the plant's overall water use by one-third. Over a dozen ZLD systems across the United States have been installed by U.S. Water in an effort to help plants remain in compliance while reducing water use on average from four gallons of water per gallon of ethanol down to two gallons of water per gallon of ethanol.
This month, we spotlight McGladrey LLP, the fifth largest provider of assurance, tax and consulting services in the country. The company's involvement in the renewable energy industry began in 2000 and it currently serves 20 renewable energy companies in Minnesota.
Read our interview with Dustin Petersen, partner at McGladrey LLP, below.
Q. Tell us a bit about McGladrey.
A. McGladrey LLP is the fifth largest U.S. provider of assurance, tax and consulting services, with more than 6,700 professionals and associates in 75 cities nationwide. We are the largest professional services firm focused on the middle market, tracing our history to 1926 when Ira B. McGladrey started his own accounting firm in Cedar Rapids, Iowa. George Hansen and Keith Dunn were admitted as partners in 1937, and by 1966 the firm had 29 offices in eight states. McGladrey, Hansen, Dunn & Company merged with Broeker Hendrickson & Co. in 1978 and with A.M. Pullen and Company in 1984.
In the summer of 1999, McGladrey & Pullen sold its nonattest assets and business to H&R Block, Inc. RSM McGladrey, Inc. was established as an indirect, wholly owned subsidiary of the Block organization. McGladrey & Pullen continued as a separate entity offering audit and attest services.
On December 1, 2011, McGladrey & Pullen acquired RSM McGladrey from H&R Block reuniting the assurance, tax and consulting practices under an integrated McGladrey & Pullen limited liability partnership structure. In 2012 McGladrey & Pullen changed its name to McGladrey LLP.
McGladrey is also a member of RSM International, the seventh largest global network of independent accounting, tax and consulting firms.
Q. Please tell us your company’s history with the ethanol industry and why your company is committed to the development of ethanol in Minnesota?
A. Our involvement in the ethanol industry began in 2000 with our renewable energy practice. As the practice has grown to include wind, solar and biomass capabilities, we have become a leader in the alternative energy industry, dedicated to understanding critical issues and providing products and services to help our clients prosper. Today, we serve 20 Minnesota renewable energy companies, and nearly 200 nationally.
In addition to strong client representation, our professionals work closely with alternative energy industry groups and regularly advocate for the best interests of your organization. When the industry needs assistance, McGladrey has provided direct interaction with the U.S. Department of Treasury and the Internal Revenue Service.
Our clients throughout the country turn to us for their wide-ranging professional services needs. Whether you need tax compliance, audit and attest services, due diligence, computer network support, or strategy and operations improvement, McGladrey can help. The research and work we perform allows us to keep you abreast of industry changes that may impact your company. We can provide you with additional insights to assist with many of the day-to-day issues you face, so you can make important decisions quickly, capitalize on opportunities as they arise, and avoid costly mistakes.
Q. From your perspective, what would you like consumers to know about the ethanol industry?
A. The need for secure, affordable energy is a worldwide business affair. In today’s global marketplace, our interdependencies bring new opportunities, but also greater complexity. Increased demand, changing regulatory requirements, and economic uncertainty are only a few of the complex issues the industry faces. To adapt and remain competitive, the ethanol industry needs the agility to navigate rapid change while staying focused on core competencies.
Q. What does your company see for the future of ethanol and biofuels?
A. Research and development are foundational elements of the alternative energy industry. We have a thorough understanding of the latest credits and governmental incentives supporting new advances in the industry, helping your business get off the ground or stay on the leading edge. Experience the power of McGladrey life cycle services from startup to multinational energy production and distribution.
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.