In the News

Omaha World-Herald

Oct 30, 2014

By Russell Hubbard

Green Plains Inc., whose shares have climbed 80 percent this year, told investors Wednesday that higher blends of ethanol are making it into the nation’s gas supply but that congested rail networks make it hard to get it out there.

“The last couple of weeks or so, we are seeing a significant degradation of service on several carriers,” Green Plains Chief Executive Todd Becker said on a conference call, discussing rail service and third-quarter earnings.

At the same time, gasoline blended to form a fuel that is 15 percent ethanol, called E15, is growing in popularity, Becker said.

“We think there will be hundreds more stations offering it next year,” Becker said. “We are seeing big initiatives from very large retail chains to get this product in the pipeline.”

Omaha-based Green Plains operates 12 plants around the country, producing about 1 billion gallons of ethanol a year. The company Tuesday reported a third-quarter profit that jumped more than fourfold, to $41.7 million.

Additional gallons of E15, now available at only about 90 stations in 14 states, will boost volumes going forward, Becker said. He told analysts and investors on the conference call that the ethanol industry is working hard to persuade retailers. Consumers, he said, are already sold.

“The stations that offer E15 are the cheapest on the street and they are draining their tanks all the time,” Becker said. “The product gets sold when offered to consumers.”

Blending ethanol into gasoline can create a motor fuel that is cheaper than clear gas because ethanol, produced mainly from corn, is less expensive. Iowa and Nebraska are the top ethanol-producing states, and rank first and third in corn production.

Ethanol has its opponents, who say per-gallon savings are offset by lower mileage from ethanol’s lower energy content.

On the rail transport front, Becker said it was better than the previous quarter but has hit recent snags. All of the nation’s major freight railroads are now required to file weekly reports with the federal Surface Transportation Board. The reports were ordered after grain shippers complained that crude oil gets priority over other cargoes, a scenario denied by the railroads.

“We are still able to move product pretty well, but have seen some slowdowns of late,” Becker said.

The nation’s two largest railroads acknowledge problems. Omaha-based Union Pacific and Berkshire Hathaway-owned BNSF Railway say they are working to speed service by hiring crews, adding equipment and improving track.

“BNSF is working with our ethanol customers, including Green Plains, to make sure their products get to their ultimate destination,” spokeswoman Amy Casas said. “Our ethanol customers are experiencing gradual improvements on our railroad and have our continued commitment that we will add the resources necessary to handle all of our customers’ business.”

Union Pacific spokeswoman Calli Hite said Chief Executive Jack Koraleski discussed rail network problems during a conference call with investors and analysts last week, and pledged to remedy them.

“Union Pacific has increased its locomotive fleet by around 900 units since September of last year and will hire 5,500 new employees this year,” Hite said. “The company also has stepped up its overall resource plan to provide the level of service our customers have come to expect.”

Read the original story here : Ethanol Maker Green Plains Says Rail Transport Not Keeping Up As More Embrace E15

Ethanol Producer Magazine

Oct 27, 2014

By ICM Inc

ICM Inc. is pleased to announce that Patriot Renewable Fuels LLC of Annawan, Illinois, has entered into a professional services agreement for ICM’s patent-pending Fiber Separation Technology and ICM’s patent-pending Generation 1.5 Grain Fiber to Cellulosic Ethanol Technology (Gen 1.5) for its ethanol plant.

FST is a value-added platform technology that increases ethanol yield and throughput, as well as increases oil recovery for its customers. The FST process separates the fiber that will be used as the feedstock for the Gen 1.5 process to produce cellulosic ethanol. Removing the fiber from the standard ethanol stream with the FST process allows the plant to produce each gallon more efficiently as well as creates the option for diversified co-products with high protein feeds and fiber to be produced.

Chris Mitchell, president of ICM, said, “ICM is pleased to see Patriot take another step forward toward cellulosic ethanol by agreeing to complete the specific engineering and design of our technologies for their Annawan site.  This step will enable their board to evaluate a construction start in 2015.  We appreciate Patriot’s continuing business as it continues to build on ICM’s base ethanol plant and our Selective Milling Technology. Patriot will be positioning itself to lead our industry into cellulosic ethanol, which not only diversifies its plant, but improves ethanol yield to over 3.08 gallons per bushel. Our team is excited to continue working with Patriot as it grows its business.”

“ICM’s ethanol technology is a logical platform on which to build our business as a biorefinery,” said Rick Vondra, vice president and general manager of Patriot Renewable Fuels. “There are many new products and growth possibilities using corn as our feedstock, and we have identified these as two high-potential processes that we can adopt now.”

Read the original story here : ICM Announces Agreement With Patriot Renewable Fuels

Biofuels Digest

Oct 27, 2014

By Isabel Lane

In the US, Fuels America has launched a six-figure TV and radio campaign in Minnesota, Michigan, and Nebraska thanking American renewable fuels champions Sen. Al Franken, Rep. Collin Peterson, Rep. Lee Terry and Rep. Gary Peters for supporting the Renewable Fuel Standard and “fighting for local jobs and working to end America’s reliance on foreign oil. Each are facing competitive elections come November 4th.

The ads are detailed below:

  • Michigan Statewide: Radio ad titled “Our Pockets” about Gary Peters’ support of the RFS and fight to break America’s addiction to foreign oil, and how the Koch Brothers and Big Oil have spent millions against Peters. The ad can be heard here.
  • Minnesota Statewide: Radio ad titled “Next Caller” highlighting Senator Franken’s support of the RFS and his work pushing the Obama Administration to increase production of renewable fuels. The ad can be heard here.
  • Minnesota’s 7th District: Radio ad titled “Change Course” highlighting Collin Peterson’s support for a strong RFS, reduced reliance on foreign oil, and a stronger rural economy. The ad can be heard here.
  • Nebraska’s 2nd District: TV ad titled “Solution” highlighting Lee Terry’s support of the RFS. The ad can be viewed here and a screenshot is below.

Earlier this election season, Fuels America ran a full-page USA ad warning that the EPA’s proposal to fundamentally alter the Renewable Fuel Standard would seriously undermine his Administration’s efforts to combat climate change, promote energy independence, and support the emerging cellulosic ethanol industry.

Read the original story here : Fuels America Debuts Campaign For RFS Supports Facing Reelection

 

Ethanol Producer Magazine

Oct 24, 2014

By Erin Voegele

The U.S. EPA has published renewable identification number (RIN) data for September, reporting that both D3 cellulosic biofuel and D7 cellulosic diesel RINs were generated during the month.

Nearly 7.56 million D3 cellulosic biofuel RINs were generated in September, bringing the total for the first nine months of the year to more than 11.12 million. According to the EPA, 35,473 of those RINs have been generated for cellulosic ethanol so far this year, along with 44,168 for cellulosic renewable gasoline, 5.12 million for renewable compressed natural gas and 5.93 million for renewable liquefied natural gas. All 11.12 million D3 RINs have been generated by domestic producers.

EPA data indicates 17,073 D7 cellulosic diesel RINs were generated in September, bringing the total for the first nine months of the year to 32,680. About 8,859 of those RINs have been generated for cellulosic diesel, with 26,416 generated for cellulosic heating oil. According to the EPA, 8,859 D7 RINS were generated by domestic producers and 26,416 by importers.

More than 4.2 million D5 advanced biofuel RINs were generated in September, bringing the year-to-date total to 119.47 million. Most, 77.09 million, have been generated for ethanol, with 20.35 million generated for biogas, 11.15 million generated for naptha, and 10.97 million generated for non-ester renewable diesel. To date, 61.83 million D5 RINs have been generated by domestic producers this year, with 57.72 million generated by importers.

More than 1.16 billion D6 renewable fuel RINs were generated in September, bringing the total for the first nine months of the year to 10.68 billion. The vast majority, 10.44 billion, have been generated for ethanol. Approximately 48.06 million D5 RINs were generated for biodiesel, along with 197.07 million for non-ester renewable diesel. So far this year, 10.44 billion D5 RINs have been generated by domestic producers, with 46.14 million generated by importers and 197.07 million generated by foreign entities.

Approximately 211.49 million D4 biomass-based diesel RINS were generated in September, bringing the year-to-date total to nearly 1.92 billion. Most, 1.49 billion, were generated for biodiesel, with 432.29 million generated for renewable diesel. Nearly 1.55 billion D5 RINs have been generated domestically, with 115.34 million generated by importers and 255.76 generated by foreign entities.

As of the close of September, the EPA estimates nearly 12.74 billion RINs have been generated this year. More than 324.94 million of those RINs have been retired, with 378.33 million locked and available and 12.03 billion unlocked and available.

Read the original story here : EPA : Cellulosic Fuel Production Continues In September

Ethanol Producer Magazine

Oct 22, 2014

By Tom Bryan

Two weeks from Election Day, Bob Dinneen told a crowd of international grain and animal feed buyers gathered in Seattle that whichever party controls Congress next year will “have the gavel” on energy and agriculture but lack the power to advance or upset biofuels policy.   

“Elections matter,” Dinneen said, citing President George W. Bush’s unlikely ascendance into ethanol industry favor when he signed both Renewable Fuels Standards into law in 2005 and 2007. “If Gore would have won [in 2000], his vision for renewables would have been more reaching but it would have had a climate change component and probably not taken up by Congress,” Dinneen said. “If McCain would have won [in 2008], he would have tried to dismantle the RFS.”

Dinneen said Obama’s current 41 percent approval rating isn’t terrible as public support for second-term presidents goes, but it is a signal of the trouble awaiting Democrats on Nov. 2. “The Democrats have more seats to defend, which means they’re on the defensive,” Dinneen told attendees of the 2014 Export Exchange in Seattle. “Republicans only need to pick up six seats to take the Senate, and where those seats are makes it more likely to happen.”

Most Senate races are still tough to predict, Dinneen said, but several national news outlets have already called the victor. The Washington Post recently predicted that it is a 94 percent certainty that Republicans will take the Senate, while the New York Times estimated the same outcome with 68 percent certainty. Dinneen reminded the audience, which included delegations from 34 different nations, that either party needs “51 percent to get the gavel, but 60 percent to get anything done.” Nevertheless, he said, a Republican controlled Senate could have implications for the ethanol industry, depending on the inclinations of the reigning party’s committee chairs. Notably, the Washington Times recently reported that seven in ten likely voters believe Republicans will retain control of the House.     

One of the few things that is expected to be accomplished between the elections and the start of the next Congressional session is the passage of a continuing resolution, or “CR,” that would extend certain renewable energy provisions including tax credits for biodiesel and renewable diesel, cellulosic biofuel and biofuels pump installation. Meanwhile, there is still no word on when the U.S. EPA will release its 2014 renewable volume obligation numbers, or RVOs. Dinneen said the EPA’s RVO suggestions “make no sense,” showing no sign of letting up on the agency in light of unsubstantiated reports that its forthcoming RVO numbers will be higher than initially thought. Holding the line, Dinneen said the EPA can only reduce the RFS schedule if there is inadequate supply of biofuels. The lack of infrastructure, on the other hand, is not a valid reason for deferment, he said. “Everyone knew we were going to put 36 billion gallons of renewable fuel into a 140-billion-gallon market,” Dinneen said. “Congress knew we were going to move past 10 percent. So the EPA’s suggestion that we need to roll back the RFS because ExxonMobil can’t use E85 is ridiculous.”    

Dinneen said whatever the outcome of the 2014 RVO, one or more industries will be disgruntled over it. “This rule will be litigated,” he said, adding that he expects the oil industry’s campaign against the RFS to continue for years.   

Dinneen touted the industry’s progress in the cellulosic ethanol arena, pointing to the start of commercial production at Poet-DSM and Abengoa Bioenergy. “It’s happening now,” he said, explaining that cellulosic ethanol producers view policy uncertainty as their largest risk. “It’s no time to be pulling back the program.”  

Addressing industry growth, Dinneen said getting E15 into the marketplace has been slow but steady, and he said ethanol exports may reach 800 million gallons in 2014, and perhaps trend toward the 1 billion mark in 2015. Showing a chart of the world’s top U.S. ethanol importers, Dinneen said, “If this country doesn’t take it, others will.”

Circling back to politics, Dinneen said today’s $3 corn could “drive painful decisions” for American agriculture. “If the ethanol industry is not allowed to grow, and corn exports don’t grow, and the carry out is big, deficiency payments [to U.S. corn farmers] are likely,” he said, calling for a return of bipartisanship amongst farm-state policy makers. “Ag needs to get back together and fight these fights together,” he said. “Or we’re going to lose.”     

Read the original story here : Dinneen : 'Elections Matter'

Oct 20, 2014

By Syngenta

Minnetonka, MN - Quad County Corn Processors (QCCP) has achieved EPA certification to generate D3 Renewable Identification Numbers (RINs) for cellulosic ethanol produced with Cellerate™ process technology. Formerly known as Adding Cellulosic Ethanol, Cellerate is a collaboration between Syngenta and Cellulosic Ethanol Technologies, LLC, a wholly owned subsidiary of Quad County Corn Processors.

QCCP earned D3 pathway approval from the EPA on Oct. 7 and Quality Assurance Program (QAP) certification on Oct. 10. Clearing these hurdles led to production of QCCP’s first QAP D3 RINs on Oct. 16.

To qualify as cellulosic biofuel, a renewable fuel must meet a 60 percent threshold for lifecycle greenhouse gas emissions. RINs are used for compliance with the Renewable Fuel Standard (RFS) program and may be "banked," traded or sold for use by parties (fuel producers and importers) who must comply with the RFS.

According to QCCP Chief Executive Officer Delayne Johnson, as cellulosic D3 RINs become available on the commercial market, biofuels opponents will no longer be able say there are no D3 RINs as a strategy to weaken the RFS.

“The biofuels industry now has the technology available to create two billion gallons of cellulosic ethanol – with no more corn,” Johnson said. “QCCP is proud to be one of the first companies to issue D3 RINs. We look forward to higher D3 RIN requirements in 2015 as new production comes on.”

In July 2014, collaboration between Syngenta and Cellulosic Ethanol Technologies, LLC, produced the first commercial-scale cellulosic ethanol in Iowa. QCCP expects to produce one million gallons of cellulosic ethanol in 2014 and two million gallons in 2015. Earlier this year, Syngenta announced an agreement with Cellulosic Ethanol Technologies to license Cellerate process technology to ethanol plants.

“Cellerate is designed to increase an ethanol plant’s production by allowing the corn kernel fiber to be converted into cellulosic ethanol,” said Jack Bernens, head of marketing and stakeholder relations for Enogen® corn enzyme technology. “Ethanol plants can easily integrate Cellerate process technology into their existing production process. Cellerate, in conjunction with Enogen corn, will deliver notable benefits to ethanol plants beyond what can be achieved through either technology alone.”

Read the full press release here : Cellulosic Ethanol Produced With Cellerate Process Technology Recieves EPA Certification For Cellulosic Biofuels RINs

Domestic Fuel.com

Oct 15, 2014

By Joanna Schroeder

As a biofuels plant, how do you make sound plant management and investment decisions in an environment of political turmoil? This was the theme of one of the panel discussions during the 2014 National Advanced Biofuels Conference that took place in Minnesota this week. The conversation focused on how the uncertainty surrounding the Renewable Fuel Standard (RFS) that has not been finalized for 2014 as of this writing, affects decisions made for biofuels plants. The panelists discussed tips and strategies on how they try to keep their business healthy and growing while also trying to position themselves for continued, future success.

Insights were given by Mike Jerke, CEO, Guardian Energy Management LLC; Brian Kletscher, CEO/General Manager, Highwater Ethanol; and Randall Doyal, CEO/General Manager, AL-Corn Clean Fuel who all run currently operating ethanol production facilities. While each one pointed to the prices of feedstocks as being the number one cost of production (feedstock costs are 80 percent of a plant’s production costs) there are other ways to streamline efficiencies to stay competitive and one strategy is to diversify into bolt on advanced biofuels technologies.

Doyal noted that the big takeaway for the attendees was that the existing ethanol industry is looking at those next generation biofuel opportunities. “They look down the road all the time, and that the existing ethanol plants are not Gen 1 – we’re way down the road from Gen 1. We’re far more advanced than that and we look forward to bringing that type of thinking into advanced biofuels,” Doyal said.

When focusing on policy, Doyal said policy directly affects a plant when it decides how to deploy its capital. “If you have uncertainty in policy, it creates an uncertain environment in the lending community and it creates uncertainty in your own board room.”

Doyal stressed, “If you don’t have good, consistent, clear policy, it’s hard to figure out your path forward.”

Read the original story here : Tips For Biofuel Investment In Turbulent Times

Ethanol Producer Magazine

Oct 13, 2014

By Holly Jessen

Growth Energy and the Renewable Fuels Association responded to the USDA’s October supply/demand report released Oct. 10, which forecasted a record corn yield. Growth Energy said it definitively ended the food vs. fuel myth and RFA said it underscores the need for market certainty. 

 

Growth Energy pointed to the WASDE projections and other recent reports from the Food and Agriculture Organization of the United Nations and Bureau of Labor Statistics as confirmation that there's virtually no correlation between U.S. ethanol production and food prices for consumers. “In report after report, we see that the American farmer can produce an abundant amount of food and fuel," said Tom Buis, CEO of Growth Energy. "It is clear that the food and fuel myth is completely unfounded and does a great disservice to the hardworking men and women that help feed the world and fuel our nation.

 

Growth Energy further pointed out that the FAO international food price index has declined 2.6 percent since August and is down 6 percent in the last year. In contrast, looking at the past year, grain prices are down nearly 9 percent, FAO said, but meat prices are nearly 22 percent higher. Domestically, food prices for August are up 2.5 percent compared to December. Corn and grain prices are rapidly going down while meat prices for consumers are up 11.6 percent for the same time period.

 

Even as livestock and poultry companies represented by the Turkey Federation, the National Chicken Council and the National Council of Chain Restaurants brag about record profits and margins they are continuing a campaign to mislead consumers about the real cause of rising U.S. food prices. “Corn prices are below the cost of production for most farmers, and ethanol is selling approximately $1 per gallon less than the gasoline on the wholesale marketplace,” Buis said. “The unrelenting deception coming from these trade associations to continue to perpetuate this lie to mask their growing profits at the expense of the American consumer is deplorable. Their greed and deception knows no boundaries. It’s time for Big Oil and its Big Food allies to begin telling the truth.”

 

RFA came out with a statement that the crop report underscores the need for demand certainty and market expansion. “The American Petroleum Institute has spent millions upon millions of dollars on ad campaigns trying to sell people on the canard that ethanol drives up food prices in a misguided attempt to garner opposition to the renewable fuel standard,” said RFA President and CEO Bob Dinneen. “But their argument is bankrupt. Because of the RFS, farmers have invested in technology and increased yields to assure ample supply for all users. Today’s report demonstrates the API campaign is intellectually dishonest.”

 

In fact, Dinneen feels the report should close the debate over the 2014 RFS final rule. Farmers making their planting decisions for this year anticipated that the biofuels volumes in the RFS would be enforced. “But in one fell swoop, the EPA’s proposed rule wiped away demand for 500 million bushels of corn and grain sorghum,” he said. “Now, farmers are faced with corn prices below the cost of production and the risk of returning to an era of increased reliance on federal farm program payments. The White House has an opportunity to help alleviate this situation simply by fixing the badly misguided 2014 RFS proposal and getting the program back on track. 

 

Read the orginal story here : Report Shows Ethanol's Connection To High Food Prices Is A Lie