Ethanol Producer Magazine

April 26, 2017

By Bob Dinneen

In 2016, the U.S. ethanol industry produced a record 15.25 billion gallons of clean, high-octane fuel and exported more than a billion gallons of the fuel to Brazil, China, Canada and other countries. I anticipate 2017 will be another record year for production and use, but I remain focused on growing demand for our fuel. Growing demand means expanded market opportunities for higher ethanol blends and to that end, the Renewable Fuels Association’s top priority this year is securing RVP parity for all ethanol blends.

How did we get here? In 1989, the U.S. EPA provided a Reid vapor pressure (RVP) waiver to 10 percent ethanol blends, concluding there would be no air quality consequence and retailers would otherwise be unable to secure blendstocks for ethanol blending year-round. In 2011, EPA approved the use of E15 in 2001 and newer vehicles, but the agency did not extend the same RVP waiver as it did to E10. As a result of this disparity, retailers in conventional gasoline areas (most of the country) have to secure specialty—and costly—gasoline blendstocks in order to continue selling E15 in the summer (June 1-Sept. 15).

The RFA has repeatedly urged EPA to take immediate administrative actions to eliminate this nonsensical regulatory barrier that is impeding growth in the use of E15 and other higher ethanol blends. We have provided the agency with reams of data from the U.S. DOE and independent laboratories proving that extending the RVP tolerance currently provided only to E10 would have no detrimental impact on ozone or other air quality standards. In fact, because of the increased oxygen content of higher ethanol blends, there would actually be improved air quality.

Inexplicably, the Obama administration’s EPA did not seem to understand the damage inflicted on retailers and consumers by denying RVP parity, however we have hope under this new administration. One of President Trump’s priorities is an overhaul of the regulatory code that has needlessly burdened American businesses, stymied growth and increased cost with little or no environmental or consumer benefit; EPA’s treatment of volatility for ethanol-blended gasoline is a perfect example. The failure to grant the RVP waiver has needlessly discouraged retailers from offering the fuel blend year-round and punished consumers who cannot take advantage of the lowest cost, highest octane source of fuel in the world.

There are several ways for RVP parity to be achieved. RFA has worked for years on an administrative fix. To date, EPA has been reluctant to use its statutory authority to grant an RVP tolerance for E15. EPA could also lower the volatility of conventional fuels; but, while supportive, the agency has not shown much enthusiasm for getting that done either. RFA remains optimistic that, with a new sheriff in town and a fresh look at the existing statutory authority, we might soon be able to offer the lower-priced, higher-octane E15 to consumers year-round. 

Of course, a legislative fix is also possible and the RFA supports bills that have been introduced, as long as they don’t jeopardize the Renewable Fuels Standard. For example, our champions on Capitol Hill have introduced two bills that would address the issue. In early March, Sens. Deb. Fischer, R-Neb., Joe Donnelly, D-Ind., and Chuck Grassley, R-Iowa, introduced the Consumer and Fuel Retailer Choice Act (S. 517) that would extend RVP parity for ethanol blends above 10 percent. A companion bill, H.R. 1311, was also introduced in the House by Reps. Dave Loebsack, D-Iowa, and Adrian Smith, R-Neb.

We will continue to pursue all avenues to make sure parity is addressed. I want consumers to have a choice at the pump, whether that’s in February or July or November. Let’s work on making sure that happens this year.

Read the original article: RVP Parity a Win, Win for Consumers

Ethanol Producer Magazine

April 25, 2017

By Ann Bailey

The benefits in feeding distillers grains are well known—it’s an economical, nutritious, palatable addition to livestock and poultry rations. Less well known are its environmental benefits that range from reducing methane emissions from cattle to minimizing phosphorus content in manure and the risk from runoff into waterways. These little-known benefits are something that University of Minnesota professor and animal nutritionist Gerald (Jerry) Shurson believes the ethanol industry should tout.

“We’re entering an era where we have to think about the environmental impact of feed ingredients,” Shurson says. One of the biggest challenges today is to sustainably produce enough nutritious, safe and affordable food for a growing population, while at the same time preserving natural resources and minimizing negative impacts on the environment. Food demand is projected to increase 70 percent between 2010 and 2050 and the growing middle class is expected to have 1.8 times more consumer buying power, allowing more people to be able to buy more milk, meat and eggs, he says. Meeting the goal of feeding the world sustainably will be multidimensional, requiring innovations in production techniques and systems that increase the efficiency and amount of food produced, while preserving finite natural resources, protecting ecosystems and biodiversity, and mitigating the effects of global climate change, Shurson says.

Estimates indicate about 14 percent of human-produced greenhouse gas (GHG) emissions globally come from the livestock sector, Shurson says. While 14 percent is not a huge contribution to the total, nonetheless, it  is significant and there are opportunities for the livestock industry to play a significant part in reducing greenhouse gases. Growing consumer concern about the effect the global livestock industry has on the environment and climate change is prompting integrated livestock and poultry producers and food production companies to begin emphasizing supply chain management to reduce their carbon footprints, Shurson says. “In other words, in addition to nutrition and economic value, they are also sourcing ingredients that have less negative impact on the environment.”  Feed ingredients are beginning to be classified by renewable and nonrenewable resource use, acidification and eutrophication potential, and contribution to GHG emissions, he says.

DDGS can play an important role. In 2015, the ethanol industry produced roughly 37 million metric tons of DDGS for export and domestic use. Historically, most of the corn coproduct was fed to dairy and beef cattle, but because ethanol and DDGS production has greatly increased during the past 15 years, the need to build the market has increased, both domestically and overseas. Inclusion rates for dairy and beef cattle have also risen and demand from other livestock sectors, such as swine, poultry and aquaculture, both domestically and overseas, has increased.

Methane, Phosphorus Benefits
One side effect of increasing the inclusion rate of DDGS in the diet of dairy cows is it increases the amount of corn oil consumed. Several studies have shown that raising dietary fat content reduces methane production, Shurson notes. That’s important because methane is a significant contributor to greenhouse gas emissions. “The reduction in methane production in cattle is a positive environmental story that makes DDGS even more attractive, beyond its economic and performance benefits.”

On top of reducing methane emission in cows, feeding distillers grains brings an important environmental benefit to poultry and swine operations. “One of the unique advantages of using DDGS in swine and poultry diets is that it contains a greater concentration of digestible phosphorus than all other grains and grain coproducts, which can dramatically reduce the amount of phosphorus excretion in manure,” Shurson says.

“Whatever is not digested and absorbed by the animal comes out in the manure, so there is a dramatic reduction in phosphorus excretion in manure when adding DDGS to these diets.”

The reduced phosphorus content in manure from pigs and poultry fed DDGS means that when manure is applied to soil, there is less phosphorus runoff into rivers, lakes and streams, Shurson says.

“Because we take corn and put it through a fermentation process with yeast in an ethanol plant, that process converts much of the indigestible phosphorus into a digestible form which is important to pigs and poultry.” Less risk of runoff into waterways Shurson says, minimizes the risk of eutrophication, which can lead to algae blooms and fish kill, if it’s severe enough.

Another environmental advantage of the high digestibility of phosphorus in DDGS is that animal nutritionists can reduce inorganic phosphorus supplementation, Shurson says. “Some experts have predicted that within the next 20 years, our natural phosphate reserves around the world will be close to being depleted, so there’s a big amount of interest, and even organizations, focused on phosphorus conservation.” Distillers dried grains plays a big role because it is not only high in phosphorus content, but the phosphorus is more digestible, reducing the pressure on inorganic reserves, he says. “That’s a good thing from a long-term environmental perspective.”

Besides having positive environmental benefits, reducing the amount of inorganic phosphates in the animals’ diets is cost effective, Shurson adds. “Inorganic phosphate sources are relatively expensive and phosphorus is the third most expensive nutritional component in animal feeds. Using more DDGS to replace inorganic phosphate supplements reduces diet cost when diets are formulated on a digestible phosphorus basis.”

On top of reducing the amount of methane in cattle and phosphorus in pigs, DDGS also have potential to mitigate the smell in commercial swine operations. Some studies have shown that the amount of hydrogen sulfide emitted from stored manure is reduced in pigs that are fed 30 percent DDGS diets compared with corn-soybean meal diets, Shurson says, which reduces odor in manure storage pits. Odor reduction is a significant advantage because as urban areas move closer to large confinement operations, complaints about the smell emitted from the manure storage pits increase, Shurson says.

Telling the Story
Historically, the focus of nutritionists and livestock producers has been on minimizing costs while optimizing animal performance. That will continue, Shurson says, but there are already signs that environmental concerns will add another level to purchasing decision. “What I’m suggesting is, we’re entering an era where we have to think about the environmental impact of feed ingredients, because global agriculture is projected to represent more than 50 percent of total agricultural economic value in the next 10 years,” he says. The growing middle class in China and other Asian countries, together with an increasing global population, will result in the production of more food animals than ever before, Shurson notes. Furthermore, driven by consumer desire, food companies and major livestock and poultry integrators are beginning to make claims that the food they produce is, among other things, environmentally friendly, he says. The business models of companies such as Walmart, Smithfield Foods and Pepsico are putting more emphasis on limiting environmental impacts in response to those concerns.

Because DDGS are a significant global feed ingredient, Shurson believes the ethanol industry has an important story to tell. “A lot of companies are talking about, and struggling with, how they can move toward a bioeconomy. The role of ethanol and its major coproduct, DDGS, contribute to a positive environmental story. I’ve begun introducing these positive environmental impact stories in many of my presentations at feed conferences in the U.S. and overseas.”

Measuring the Impact
Feeding food-producing animals diets that reduce the negative effect on the environment is important because it is something that can have an appreciable, measurable effect, says Jennifer Schmitt, program director and lead scientist at the NorthStar Initiative for Sustainable Enterprise, a program at the Institute on the Environment at the University of Minnesota. During the next year, Schmitt will be working on a project with Shurson and Pedro Urriola, University of Minnesota animal science research assistant professor, that will look at how four hog diets affect the life-cycle (cradle to grave) environmental impact of hog production. One of the diets will contain DDGS, another food waste, a third, phytase enzymes and a fourth, synthetic amino acids. Hogs were chosen for the project because their digestive systems can handle a wider variety of feeds than animals such as dairy and beef cattle.

“If we can show ways to improve the environmental impacts with pork, we can reduce the overall environmental burden of meat animals,” Schmitt says. “Meat consumption has large environmental impacts in the world, so if we want to address greenhouse gas emissions, water use, water quality, land use, etc., we must either decrease meat consumption in the world or have more sustainable meat production.” It is unlikely total world meat consumption will decrease because the middle class is expected to grow and they will be eating more, not less, meat, Schmitt says. That means that finding a more sustainable way to produce meat is important. Manure management is the No. 1 environmental “hot spot” or the largest contributor, to the greenhouse gases associated with hog production. Second is production of corn feed products, followed by in-home consumption, which includes food waste, she says. “If we can hit those big hot spots and make improvements, we can have environmental gains.”

Read the original story: Untold Story of DDGS’ Positive Environmental Impact

Syngenta

April 6, 2017

News Release:

MINNETONKA, Minn., USA, – Developments in cellulosic ethanol technology, including a collaboration between Syngenta and Cellulosic Ethanol Technologies, LLC, are viewed as opportunities to help grow demand for Earth-friendly American ethanol.

According to Miloud Araba, head of Enogen® technical services at Syngenta, cellulosic innovation could enable dry grind ethanol producers to capitalize on steadily increasing Renewable Fuel Standard (RFS) volume requirements for cellulosic biofuels, which are up 35 percent for 2017.¹ Araba discussed opportunities for cellulosic ethanol at the 2017 National Ethanol Conference.

“Approximately 10 percent of the corn kernel dry weight is fiber, and converting corn kernel fiber feedstock to cellulosic ethanol has been possible for some time,” Araba said. “However, recent advances in technologies can enable commercial deployment today. In fact, the approximately 12 million tons of corn kernel fiber feedstock already available at U.S. dry grind ethanol plants each year could produce a potential 1.5 billion gallons of additional, cellulosic ethanol.”

Araba added that the California Low Carbon Fuel Standard (LCFS) offers further opportunities for corn kernel fiber. “Low carbon intensity fuel that puts out fewer emissions will be increasingly needed in California to meet the goals of the LCFS program and the demand for LCFS credits,” he said. “Looking ahead, cellulosic ethanol from corn kernel fiber will be in demand because long-term objectives of the LCFS cannot be met with D6 ethanol at 10 percent.”²

In 2014, the U.S. Environmental Protection Agency added corn kernel fiber to the list of qualifying cellulosic biofuel feedstocks as part of the RFS. That same year, using Cellerate™ process technology, Quad County Corn Processors (QCCP) was the first commercial cellulosic facility – using corn kernel fiber as feedstock – and achieved EPA certification to generate D3 RINs. Through November 2016, QCCP’s output represented approximately 85 percent of D3 RIN ethanol produced. To date, QCCP has produced more than 5.5 million gallons of cellulosic ethanol.

Araba added that Cellerate enables an ethanol plant to leverage its existing infrastructure to produce cellulosic ethanol and significantly increase throughput. Performance results achieved at QCCP to date include: a six percent yield increase plus a 20 percent throughput increase combined for a 26 percent increase in ethanol production³; higher protein feed co-products; and improved oil yield.

“In addition to improvements in throughput and yield, Cellerate enhanced by Enogen® corn enzyme technology drives corn oil yield, leads to increased protein levels and lower residual starch content in co-products,” Araba said. “Protein increases were observed immediately after Cellerate was integrated at QCCP in July of 2014. Initial feed formulation evaluations have shown that Cellerate can lead to an increase in the value of feed co-products, as well as potential access to higher value feed markets.”⁴

For Cellerate technical inquiries, or a tour of the Cellerate process at QCCP, please contact This email address is being protected from spambots. You need JavaScript enabled to view it.">Tim Tierney with Syngenta at 612-801-9775 or Travis Brotherson with QCCP at 712-282-4628. Learn more about Cellerate process technology at www.Enogen.com

Read the original release: Syngenta Discusses the Future of Cellulosic Ethanol and Opportunities for Dry Grind Ethanol Producers

Ethanol Producer Magazine

April 4, 2017

By Renewable Fuels Association

U.S. ethanol exports hit 138 million gallons in February, the third-highest monthly volume on record, according to government data released today and analyzed by the Renewable Fuels Association. The February total falls short of only two other months—November 2011 (152.5 mg) and December 2011 (172.7 mg).

Brazil was again the top customer, taking in more than one-third of all U.S. ethanol exports (50.8 mg, or 37 percent) but 14 percent less than record shipments to Brazil in January. Canada also decreased its purchases in February with 24.7 mg (18 percent of total exports) entering the country. Sales to India, however, nearly doubled from the prior month, increasing from 13.2 mg to 24.3 mg. The United Arab Emirates (10.1 mg) and the Philippines (7.0 mg) were other significant importers in February. Year-to-date exports stood at 259.8 mg, up nearly 70 percent from the year-ago total of 154.1 mg.

Exports of U.S. undenatured fuel ethanol rose by 14 percent over January to a record volume of 106.3 mg—nearly double the quantity shipped two months prior. About half of the undenatured product (50.8 mg) went to Brazil. India received a quarter of U.S. undenatured fuel ethanol (24.2 mg), up 118 percent from its January intake. The UAE (10.1 mg) and Philippines (7.0 mg) rounded out top markets for undenatured fuel ethanol. Denatured fuel ethanol exports in February experienced a slight uptick, rising 1 percent to 26.7 mg. Canada and Peru again accounted for the bulk of the market, receiving 23.6 mg (88 percent) and 3.0 mg (11 percent), respectively.

Exports of distillers grains hit 1.07 million metric tons (mmt) in February, the highest monthly total in six months and up 14 percent over January. Mexico expanded its purchases by 36 percent to 241,249 mt (23 percent of total U.S. exports), firmly holding on to its status as the top DDGS destination for a third straight month. Similarly, the Turkish market has been expanding, with a 21 percent increase in DDGS exports in February to 152,537 mt (14 percent). Thailand (71,838 mt), China (64,534 mt), Japan (62,562 mt), Indonesia (58,934 mt), and Spain (58,263 mt) were other top markets, and together with Mexico and Turkey, accounted for two-thirds of February exports. The remaining one-third of DDGS was distributed to 29 countries around the globe. Year-to-date exports stood at 2.01 million metric tons.

Read the original story: RFA: February Ethanol Exports Neared Record, DDGS Shipments Rose