Media

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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.

Interview with Brian Kletscher, CEO of Highwater Ethanol.

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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.

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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.

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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. 

Heartland Plant 1

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.

Interview with Mike Jerke, general manager at Chippewa Valley Ethanol Company

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Q. Please tell us a bit about why Chippewa Valley Ethanol Company (CVEC) was established and its history over the years. What makes CVEC unique?

A. Chippewa Valley Ethanol Company (CVEC) began as a dream between two Benson, Minnesota men more than two decades ago. John Carruth, a local farmer, and Ray Millet, the local electric cooperative manager. The two wanted to make the most of the area’s corn production while also stabilizing electricity rates. Their answer was Chippewa Valley Agrafuels Cooperative (CVAC), a group of more than 650 shareholders that included producers, elevators, and local investors.

CVAC became the general partner of the ethanol partnership (CVEC) and construction on the facility began in June 1995. The first bushel of corn was ground on April 26, 1996 marking the start of full operations at CVEC.

Heartland Plant 1

Originally conceived as a 15 million gallon per year facility, CVEC currently produces nearly 50 million gallons per year. It is still a small-town Minnesota company but has grown to 975 cooperative members; the majority of which live within a 50 mile radius of the plant.

CVEC has grown and diversified into direct selling of E85, industrial ethanol production, and beverage (vodka) production. We count our culture of innovation as a significant strength that has led to solid returns for our member/owners.

In addition to our local efforts, we are member/owners of Renewable Products Marketing Group (RPMG) which is one of the premier ethanol and co-products marketing firms in North America. Located in Shakopee, Minnesota, RPMG is producer owned and focused on providing value back to its members.

Finally, we have ownership interest in four other ethanol facilities and continue to see strategic investments in production as a long term benefit to our shareholders.

Q. What has CVEC's impact been on the local economy and surrounding communities?

A. The direct effect our Company has had on the surrounding economy can be measured by the cash distributions that have been sent out thru the years. Since inception, CVEC has returned over $93 million to our members. Additionally, the Company employs 50 people and like other ethanol facilities utilizes numerous local businesses for services such as trucking, millwright, electrical work, miscellaneous business functions, and so forth.

Q. What do you see as the biggest threats to the ethanol industry in Minnesota in the short-term and in the long-term?

A. The biggest threat to the ethanol industry in Minnesota is complacency. Ethanol has revitalized our rural communities and provides a clean cost competitive alternative to air-polluting petroleum. We cannot lose sight of that or take it for granted. Unsubsidized ethanol is competing against petroleum, a product that recently ‘celebrated’ 100 years of taxpayer support. Oil subsidies continue to cost the taxpayer $4-5 billion every year.

It is certainly important that we continue to look for renewable alternative sources to replace our dependence on fossil fuels but we need to remember that the only viable solution currently is ethanol. Big Oil will use every opportunity to lull the American public into thinking there is no energy problem. If we are complacent, our neighbors and many allies will only hear the Big Oil message.

Q. What are your feelings on the role of the Minnesota state government and its policies affecting local ethanol producers? Are there policy changes you'd like to see that would greatly impact the Minnesota ethanol industry?

A. Minnesota needs to remember how to be a leader. In 2003, the State led the nation with the embracing of 10% ethanol in every gallon of gasoline. As an early adopter of E85, Minnesota boasts the highest number of retail stations providing E85 in the nation. Currently, the State Legislators are considering bill language to set aggressive targets for even more use of alternative transportation fuel. While all of that is good, as a State we have yet to aggressively roll out E15 as an option to the consumer. As the most vigorously tested fuel in history, there are no more federal barriers to E15 use in vehicles model year 2001 and newer. Yet in Minnesota, the State that led the way with higher ethanol blends, we do not yet see a collective effort to encourage and support the deployment of E15.

State government needs to focus itself on the collective good E15 represents and move the ball. We do not need to reinvent the wheel. What was once done with E85 can be replicated with E15. Let’s be a leader again. Or at the very least, try to catch up with Iowa.

 

Interview with Randall Doyal, CEO of Al-Corn Clean Fuel

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Q. Where specifically has Al-Corn made the most significant improvements in production efficiencies since beginning production?

A. We started production in 1996.  Our largest improvements are a 15% increase in ethanol yield per bushel, 30% decreases in natural gas and electricity per gallon, and a 240% decrease in water use per gallon.  We continue to look for ways to improve yield, decrease energy and use less water.

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Q. How long have you personally worked in the ethanol industry and what drew you to this career path?

A. I started in this industry in 1982.  I was working as a carpenter, and got hired on to do construction at a small ethanol plant in my home town.  When I arrived the first day I was walked through the one plant that was operating (another was under construction at that time).  Then I was told that I was a “cooker”.  Thankfully the “distiller” that was on duty showed me what I was supposed to do to produce batch cooks and fill a fermenter.  But no one could tell me why exactly we followed the steps we followed.  When I got off work that evening I went to the library at the local university and checked out just about every book I could find that talked about making alcohol, or fermentation, or even moonshining.  That was my introduction to the industry that has been my home and my passion ever since.

Q. Please share the impact that you feel Al-Corn has on the local economy and surrounding communities?

A. There are some impacts that are easy to quantify.  We are the largest tax payer in our community.  That has immediate impact on our community.  We have contributed to the success of our farmer members.  I can see that in the upgrades of their equipment from small single axle trucks to multiple tractor/trailer rigs for delivering their corn.  Seed and implement dealers love us.  We create a multitude of jobs from the vendors that supply us to the construction firms that help build and repair our facilities to the truckers who transport our finished products like CO2, ethanol, DDGS (livestock feed), and corn oil.

Q. How do you explain to consumers the myth of “Food vs Fuel” surrounding grain-based ethanol production?

A. Ethanol production in the US does not use “food”.  We use feed grain quality corn, corn that would have gone into feeding livestock.  The process converts the starch portion of the kernel into ethanol and CO2.  Some of the oil is recovered and is sold to make biodiesel or to feed livestock.  The remaining portion of the kernel is concentrated into a high quality livestock feed that is high in protein and digestible nutrients.  That product called Distillers Dried Grains with Solubles, DDGS, is sold into the livestock feeding market.  So we are producing both fuel and feed, and we are not using food to do so.

Q. Lots of talk lately in the energy world about RIN credits (Renewable Identification Number and is a renewable fuel credit). What is your take on why there as been such a significant price spike for RIN credits?

A. RIN price spikes are completely due to the oil industry’s desire to limit access to market for ethanol.  Ethanol producers are selling ethanol well below the rack (pretax) price of gasoline.  Each gallon of ethanol sold by a producer has a RIN attached, at no additional cost.  But the oil industry is rushing to buy additional RINs from nonobligated parties rather than allowing the entry of E15 to the market or correctly valuing and promoting E85.  So the oil industry is effectively raising the cost of gasoline by more than a dime a gallon by their action, when we could allow more lower priced ethanol to enter the market and reduce consumer costs. 

Expect this to continue, because it is clear that the oil industry does not want to lose any more market share to ethanol.  They will cover their additional obligation by buying high priced RINs rather than blending lower cost ethanol. And they will definitely increase the fight to eliminate the Renewable Fuel Standard that creates the obligation. RFS sets definite targets for replacement of petroleum and is the law passed by Congress in 2007. The ethanol industry did its part to provide the product as the law required, but the oil industry has done virtually nothing to prepare for higher ethanol blends.   

Q. How do you see “second generation” or “advanced biofuel” technology meshing together with Minnesota’s existing biofuel plants and infrastructure?

A. I have long been a believer that if cellulosic ethanol actually becomes viable, it will be adapted by the existing industry in relatively short order.  We have always looked for ways to improve and expand on what we can do, and all of work toward increasing ethanol yield per bushel of corn we grind.  Being able to use the pericarp, the fiber portion of the kernel, would increase that yield.  Being able to process stover would significantly increase our total ethanol yield per acre, and that is another goal we strive for.  By the way, with the sort of yield per acre many of our members achieve in a normal crop year, and with the yield efficiency we have here at the plant, we are already producing 600 gallons of fuel ethanol or more per acre.

Interview with Dana Persson, CEO/General Manager of Central MN Ethanol Co-op.

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Q. What do you view as the most important things you can do as a general manager to ensure the continued success of Central MN Ethanol Co-op (CMEC) facility?

A. A challenge for the ethanol industry, like many other industries, is managing our margins. As a plant, we have little control over the price that we receive for the products we produce (ethanol, DDGS and corn oil) as the prices are dictated by the markets.  The same is true for what we pay for our major inputs (corn and natural gas).  As a team we work to properly manage the commodity risk that is inherent in the business and ensure that we are operating the plant at its optimal performance and peak efficiency.  We have made significant improvements in operational efficiencies in  the last couple of years  and we will continue to do so into the future.

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Q. How long have you personally worked in the ethanol industry and what was your path to your current position?

A. I started my career in the Grain and Farm Supply business managing locally owned cooperatives.  In the middle 1990's I helped develop  a "greenfield" fully integrated poultry operation selling egg products to companies in the food manufacturing and food service industry. We sold the company in 2009.  I have been with CMEC and I have worked in the ethanol industry for the last two years.

Q. Please share the impact that you feel CMEC has on the local economy and surrounding communities?

A. We feel that employing local people is an important part of keeping a community vibrant. CMEC currently has 29 full time employees and 2 part time employees. CMEC supports many other local businesses in the area by purchasing goods and services from these companies. In addition, CMEC also provides benefits to the local agricultural industry as we provide a consistently competitive market for corn. CMEC's presence has improved our local corn basis and saves agricultural producers the expense of transporting their product greater distances.

Having been in the grain business for over 30 years, I have witnessed the effects of a weak agricultural economy firsthand and its direct impact on families, communities and the country at large.  It was not that many years ago that farmers consistently sold their grain for a price that was well below what it cost the farmer to produce it.  The result of this deficit was larger payments through government farm programs. More recently because of improved corn prices, government payments to farmers have decreased.

In my experience, rural areas have exported a lot of "brain power" from our local communities as our kids lost hope in careers in agriculture and sought their fortunes from non-ag industries. We hope that the impact of ethanol on the agricultural community provides the opportunity for young people to return to rural communities for jobs and possibly the opportunity to return to the family farm.

Q. What would you like consumers to know about your plant and the products produced by the plant?

A. In my opinion, one of the best kept secrets about the ethanol industry is the positive impact we have on the livestock industry. In addition to ethanol, one of the co-products from our ethanol production process is Dried Distillers Grains (DDGs) which are sold to livestock producers for feed. We sell this very high quality feed (protein content of 27-30% and fat content of 6-9%) at a discount to raw corn values. This allows livestock producers to displace higher cost ingredients and thereby reduce their overall feed costs substantially.

Q. Where are the biggest opportunities for ethanol in the next 10 years in your opinion?

A. Ethanol is extremely important since it is as an economical source of octane in fuels and an oxygenate replacement for MTBE. MTBE is fossil fuel derived and was banned because of its adverse health effects and pervasiveness in the environment. Future engines will require higher levels of octane to achieve better performance and economy required to meet new federal standards and ethanol can satisfy the requirements of those new engines.