In the News

PR Newswire

Aug 26, 2014

St Paul - CHS, a leading energy, grains and foods company and the nation's leading farmer-owned cooperative, has announced a new program to better enable some of the 1,400 Cenex branded locations to meet consumer demand for an E15 ethanol blend.

"We are excited to offer a new Cenex Tank Program, which further demonstrates CHS leadership in renewable fuels and helps keep the Cenex brand at the forefront in meeting consumer demand for ethanol blends," says Doug Dorfman, CHS vice president – refined fuels.

For Cenex retailers wanting to offer E15 in addition to their current gasoline products, the Cenex Tank Program will cover a significant portion of the cost to purchase and install an additional storage tank for the purpose of offering E15.

The Cenex network was among the first in the country to offer mid-level ethanol blends under its brand and has achieved significant increases in ethanol sales over the last five years, according to Dorfman.

"We value our partnership with Cenex retailers and will continue to assist them in their efforts to meet consumer demand for ethanol blends," says Dorfman. "Supporting ethanol demand also adds value to CHS member owners and farmers."

As the nation's leading farmer-owned cooperative, CHS is involved in renewable fuels from the farm to the end-user. A long-time, global marketer of ethanol and distillers dried grains with solubles (DDGS), CHS also produces ethanol at a recently acquired plant in Rochelle, Ill.

Read the original press release here : Cenex Tank Program Assists Retailers Offering E15

Ethanol Producer Magazine

Aug 22, 2014

By Sussane Retka Schill

The U.S. EPA has finalized its 2014 renewable volume obligation (RVO) rule for the renewable fuels standard (RFS) and submitted it to the Office of Management and Budget (OMB) for review on Friday, Aug. 22.

The publication of the proposed rule on Nov. 15 precipitated widespread concern in the ethanol industry and a large number of responses during the comment period. .

Industry leaders are optimistic the proposed will be modified  

“While we have not seen the rule, we hold strong in our belief that EPA and OMB will fulfill President Obama’s commitment to biofuels as a means of greater energy independence, lower greenhouse gas emissions, and wider availability of cost-saving alternative fuels for American consumers,” Bob Dinneen, president and CEO of the Renewable Fuels Association, said in a statement. “This decision is about more than targets and gallons, it is about a rationale that places highest importance on the long term strength of this country and not the bottom line of oil companies.”

“While OMB has up to 90 days to review this rule, what is most important is the content of the final rule,” said Tom Buis, CEO of Growth Energy. “The renewable fuels industry has provided extensive comments highlighting how the proposed reduction in the 2014 RVO’s would be detrimental to the biofuels industry, the American consumer and our environment.  I hope that after reviewing these thorough comments, they will finalize a rule that moves our nation forward on the adoption of renewable fuels, not backwards.

“Ultimately, this final rule should promote the policy goals of the RFS and call for an increase in the production of renewable fuels, so we can continue to reduce our dependence on foreign oil, create jobs at home that cannot be outsourced and mitigate climate change, while we improve our environment. Furthermore, it is critical we have the support of the Administration to end the monopoly oil companies have on the liquid fuels marketplace and finally provide consumers with a choice and savings at the pump.”

From the American Coalition for Ethanol, Brian Jennings, executive vice president, provided this statement: “ACE members are pleased the 2014 RVO is now at OMB for interagency review and we continue to encourage the administration to finalize a rule that allows the RFS to work by incentivizing oil companies to blend above the E10 limit.  Anything short of that turns the keys to the RFS over to the oil companies and puts cellulosic biofuel at risk. While all stakeholders have waited a long time for the final rule, and it could take another 30 days or more for interagency review, getting the rule done right is far more important than getting it done quickly.” 

Read the original story here : EPA's Final 2014 RVO Delivered To The OMB; Industry Reacts

Emmetsburg Reporter

Aug 22, 2014

By Jane Whitmore

U.S. Senator Charles Grassley was given a tour of POET/DSM Project LIBERTY last week.

"I won't be able to come to the Grand Opening, so they invited me here to see it," said Sen. Grassley. "When I go to a business place to tour, I always talk to the employees."

The Senator spent half of his time at POET talking to the employees and answering questions. They talked mostly about ethanol.

"We talked about the possibility about retaining the RFS (Renewable Fuel Standard)," said Grassley. "It's in EPA, where it's been since last November. They could have issued a rule around Feb. 1. We think we've made some impact, I can't prove that, but by the delay and the delay and the delay now I think it's going to be delayed until after the election."

Grassley said he did not know if the RFS would be the original 13 billion gallons or, if they don't do anything, it would go to 14.4 billion gallons.

"That's what they're supposed to use this year (14.4 billion gallons), or somewhere in between," he said. "We don't know even when we talk to the director. We've even talked to people at the White House."

The last person employee to speak said that he was born in Emmetsburg and glad to live here.

"He said, 'just look at the good jobs we've been creating.' I said, you just said one-fifth of what I generally end a speech with on ethanol:

"It's good for the jobs in rural America that you never thought you'd have.

"It's good for agricultural income.

"It's good for the environment.

"It's good for national security, because energy is very essential to protect our country and help the military.

"It's good for balance of trade because you keep exporting.

"So I always end my speech: Everything about ethanol is good, good, good. There's no negatives about it."

One Of A Kind

Sen. Grassley pointed out, "When they keep using the phrase 'one of a kind' 'the biggest' or 'the second biggest' it's pretty impressive, coming from rural America.

"The foresight of people, not only for ethanol from grain, moving to cellulosic it's phenomenal very, very impressive. Just the capitalization of it, the ability to get that done to even do all this building is pretty impressive, and then the scientific work that goes into the process."

Grassley encourages people to go back to the 1970s. "Who would ever thought you and I would never think that we were going to be able to run our cars off of stuff made from corn. Here we are, doing it big time.

"You would have been laughed at if you'd have said we're going to make it from corn stalk, and leaves and stover and all that stuff.

"It's just kind of unbelievable. Seeing is believing" he said.

On a personal note, Grassley related, "In 1984 I bought a 1964 Oldsmobile and I had it for about 20 years and I always burned the 10-percent (ethanol) in it. Somebody was telling me that a car made in the 1980s, ethanol was ruining it. Don't tell me that stuff, I burn it in a 1964 Oldsmobile."

A Look At Ethanol

"Our biggest problem in Washington is ignorance about ethanol," said Grassley. "It's difficult to fight ignorance. One of the best examples about ethanol is the number of people that pronounce it 'eethanol'."

Continuing on that thought, Grassley added, "There's a great deal of ignorance. A few years ago, the biggest uproar about ethanol was, we've got $7 corn because of a drought, you shouldn't be using corn for ethanol, we've got to use it for feed. We were planting 93 million acres of corn. Why are we planting 93 million acres instead of 85 million acres? Because of ethanol. If we didn't have ethanol, we'd be planting 85 million acres of corn and if we had a drought we'd still have $7 corn. I probably made people mad if I tried to tell people that, but sometimes you have to explain that to farmers, livestock farmers. That's part of the problem we have defending ethanol."

Read the original story here : Everything About Ethanol Is Good-Good-Good

The Hill

Aug 22, 2014

By Timothy Cama

A regulation setting the required volumes of ethanol and biodiesel that fuel refiners must use was sent to the White House Office of Management and Budget for review Friday, the final step before the rule mandate can be unveiled.

The Environmental Protection Agency proposed last year to reduce the volume of ethanol refiners must blend into gasoline for 2014, while keeping the mandate for biodiesel in diesel the same as the previous year.

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Last year’s proposal proved extremely controversial. The oil industry and other groups opposed to the Renewable Fuel Standard (RFS) applauded it as a recognition of the limits of ethanol and biodiesel, while companies that make the fuels blasted the EPA for turning its back on renewables.

In announcing the White House review, the EPA did not say whether it changed the volumes from last year’s proposal but said it supports the program and wants to increase renewable volumes.

“EPA supports the energy independence and security goals that congress envisioned when establishing the RFS program,” a spokeswoman said. “The agency’s overarching goal is to put the RFS program on a path that supports continued growth in renewable fuels over time.”

The EPA said it received more than 340,000 comments on the proposal, and it will issue the final rule after the White House and other federal agencies weigh in.

Under the law that established the RFS, the EPA is supposed to finalize each year’s volumes in November of the prior year. This year has been the longest delay in the program’s history.

The White House is allowed to take up to 90 days for its review, but can easily extend the timeline if necessary.

Read the original story here : Ethanol Mandate Goes To White House For Review

KEYC - TV

Aug 20, 2014

By Tyler Utzka

An ethanol plant in Lamberton is celebrating the completion of a phase which will allow them the ability to produce a new renewable fuel in the future.

Highwater Ethanol in Lamberton has checked off one big to–do item off their checklist.

The plant has been working with Butamax Advanced Biofuels since 2011 to create a product called biobutanol.

The transition will take three phases, and today, everyone involved celebrated the completion of phase one.

Highwater Ethanol, CEO, Brian Kletscher says, "Our potential here to produce butanol is our next phase we're going to be on the cutting edge of new technology for a new fuel for the United States. The opportunities are very large for the ethanol industry to produce this ethanol product for the fuel industry."

Rep. Colin Peterson says, "It will allow them to do the biobutanol which is called a drop in fuel which has the same carbon, almost as oil or gasoline. So it can be mixed in with gasoline and not have the same issues we have with ethanol and E10 and so forth."

Back in October of last year, Highwater Ethanol began installing Butamax technology. Constructing through the brutal winter to get the project closer to completion.

Peterson says, "This could have big implications for the future. If biobutanol works and takes off, there could be significantly more corn going into motor fuel than what we're currently doing with the plants we have built right now."

Getting closer to creating another renewable fuel that they say we could one day rely on.

Highwater Ethanol says phase two will be the addition of the butanol technology and says that are currently in negotiations with Butamax to take the next step forward. 

Read the original story here : Highwater Ethanol Moving On To Next Phase

Ethanol Producer Magazine

Aug 18, 2014

By USDA Agricultural Research Services

The release of a new type of switchgrass specifically designed for bioenergy generation has been announced by USDA researchers and their partners. Agricultural Research Service scientists have spent decades working on different projects that contributed to the development of the cultivar "Liberty," which can yield 8 tons of biomass per acre.

ARS is USDA's chief intramural scientific research agency, and this research contributes to the USDA priority of developing new bioenergy sources.

The release of the new cultivar is a significant milestone for ARS. It's also a key accomplishment for CenUSA Bioenergy, a project funded by USDA's National Institute of Food and Agriculture, which is tasked with developing perennial bioenergy production systems in the Midwest. An announcement about Liberty was published in the Journal of Plant Registrations in June.

ARS researchers who contributed to Liberty's development include retired geneticist Ken Vogel, agronomist Rob Mitchell, molecular biologist Gautam Sarath, and geneticist Michael Casler. Mitchell and Sarath work at the ARS Grain, Forage and Bioenergy Research Unit in Lincoln, Nebraska, and Casler works at the U.S. Dairy Forage Research Center in Madison, Wisconsin.

Liberty contains traits from southern lowland switchgrass types that result in high yields, as well as traits from northern upland switchgrass types that support winter hardiness. In a 16-year breeding study, the new cultivar increased biomass production by as much as 43 percent compared to the parent lines.

Another plus with the new cultivar is that gains in yield were achieved without an increase in nitrogen fertilizer use, which helped lower expected production costs on the farm by approximately $20 to $30 per ton. With the increased yields, each acre of switchgrass could potentially be used to produce 75 to 160 more gallons of ethanol.

The development of Liberty followed several ARS investigations into the evolutionary patterns of switchgrass, which is a native North American perennial with a highly complex genome. This work has resulted in the identification of eight regional gene pools with traits that could be useful in developing switchgrass varieties for different production environments.

Results from these studies have been published in Genetica and Crop Science.

Read more about this work in the August 2014 issue of Agricultural Research magazine.

Read the original story here : USDA : New Switchgrass Variety Promises More Biofuel At Lower Cost

Renewable Fuels Association

Aug 14, 2014

By Geoff Cooper

Believe it or not, there are still some clueless critics out there who have the audacity to claim corn ethanol is “not economical.” Perhaps they haven’t noticed that wholesale ethanol prices have been an average of $0.71 per gallon lower than wholesale gasoline prices so far this year. Maybe they overlooked the fact that ethanol has been priced at 75–80% the price of gasoline for much of the past three years. It’s possible, I suppose, that they haven’t noticed the $1 per gallon spread between ethanol and RBOB gasoline futures prices in April–August 2015.

And maybe they didn’t notice that for the first time in nearly eight years, a bushel of corn—the primary input in the ethanol process—costs less than a gallon of gasoline. That’s right—the price of a 56-pound bushel of corn averaged just $3.57 in July, while the national average price for a gallon of regular gasoline hit $3.61.

Let’s think about what that means from an economic standpoint.

- From one bushel of corn we get at least 2.8 gallons of fuel ethanol. For you BTU counters out there, that means $3.57 worth of corn gives you nearly twice as much usable energy (in the form of ethanol) as you get from $3.61 worth of gasoline. Of course, ethanol’s high octane and oxygen content mean its value goes far beyond its BTU content.

- In addition to the ethanol, we get about 16.5 pounds of high-protein livestock feed from one bushel of corn. This amount of feed—called distillers grains—is enough to produce 10 quarter-pound hamburgers, or roughly 8 pounds of chicken.

- But that’s not all! Most ethanol biorefineries are also extracting about 0.6 pounds of distillers corn oil from every bushel of corn processed. This vegetable oil is used as another animal feed ingredient, or as a feedstock for biodiesel or renewable diesel.

- Many ethanol plants also capture and sell high purity carbon dioxide. This CO2 is used for carbonating beverages, flash freezing grocery items, and a number of industrial purposes. Each bushel of corn processed by an ethanol plant results in about 16 pounds of CO2 - enough to carbonate nearly 4,300 cans of soda!

Talk about bang for your buck! Any way you slice it, converting corn to ethanol and distillers grains is a tremendously efficient and economical use of America’s most versatile crop. We did a similar economic comparison last fall when crude oil was $100 per barrel and corn was about $4.65 per bushel. Since that time, ethanol’s competiveness with gasoline has improved even further.

It’s no wonder that ethanol has been able to claim the title as the lowest cost motor fuel and octane source in the world over the past several years.

Read the original story here : What Can You Get For $3.60?

Believe it or not, there are still some clueless critics out there who have the audacity to claim corn ethanol is “not economical.” Perhaps they haven’t noticed that wholesale ethanol prices have been an average of $0.71 per gallon lower than wholesale gasoline prices so far this year. Maybe they overlooked the fact that ethanol has been priced at 75–80% the price of gasoline for much of the past three years. It’s possible, I suppose, that they haven’t noticed the $1 per gallon spread between ethanol and RBOB gasoline futures prices in April–August 2015.

And maybe they didn’t notice that for the first time in nearly eight years, a bushel of corn—the primary input in the ethanol process—costs less than a gallon of gasoline. That’s right—the price of a 56-pound bushel of corn averaged just $3.57 in July, while the national average price for a gallon of regular gasoline hit $3.61.

Let’s think about what that means from an economic standpoint.

  • From one bushel of corn we get at least 2.8 gallons of fuel ethanol. For you BTU counters out there, that means $3.57 worth of corn gives you nearly twice as much usable energy (in the form of ethanol) as you get from $3.61 worth of gasoline. Of course, ethanol’s high octane and oxygen content mean its value goes far beyond its BTU content.
  • In addition to the ethanol, we get about 16.5 pounds of high-protein livestock feed from one bushel of corn. This amount of feed—called distillers grains—is enough to produce 10 quarter-pound hamburgers, or roughly 8 pounds of chicken.
  • But that’s not all! Most ethanol biorefineries are also extracting about 0.6 pounds of distillers corn oil from every bushel of corn processed. This vegetable oil is used as another animal feed ingredient, or as a feedstock for biodiesel or renewable diesel.
  • Many ethanol plants also capture and sell high purity carbon dioxide. This CO2 is used for carbonating beverages, flash freezing frozen grocery items, and a number of industrial purposes. Each bushel of corn processed by an ethanol plant results in about 16 pounds of CO2—enough to carbonate nearly 4,300 cans of soda!

Talk about bang for your buck! Any way you slice it, converting corn to ethanol and distillers grains is a tremendously efficient and economical use of America’s most versatile crop. We did a similar economic comparison last fall when crude oil was $100 per barrel and corn was about $4.65 per bushel. Since that time, ethanol’s competiveness with gasoline has improved even further.

It’s no wonder that ethanol has been able to claim the title as the lowest cost motor fuel and octane source in the world over the past several years.

- See more at: http://www.ethanolrfa.org/exchange/entry/what-can-you-get-for-3.60/#sthash.xfmbITlb.dpuf

Ethanol Producer Magazine

Aug 14, 2014

By North Dakota Farmers Union

Ethanol production in North Dakota generates significant income for retail agricultural service and supply dealers, roughly $700 million a year, according to a study recently released by the Center for Agricultural Policy and Trade Studies at North Dakota State University.

The study, commissioned by North Dakota Farmers Union (NDFU), directly links 10 percent of all agricultural retail sales to ethanol production.

“Growing corn for ethanol production is not only an important value-added market for farmers, it is a lucrative product for fuel suppliers to retail,” said NDFU President Mark Watne. “Thirteen cents of every sales dollar last year was directly related to ethanol production.”

The study outlined four immediate impacts of ethanol production: increased commodity prices, increased net farm income, increased agricultural inputs, and increased land prices.

According to the study, ethanol production in the U.S. was about 1.6 billion gallons in 2000. A decade later, America produced 12.7 billion gallons of ethanol, consuming nearly 37 percent of the U.S. corn crop. That increased demand raised corn prices from $2 per bushel on average in 2005 to almost $7 in 2012.

“Corn sets the price for all other commodities,” noted Watne. “It’s to our advantage to grow, sell and buy this home-grown renewable fuel.”

To view the study in full, go to AG STUDY

Read the original story here : Study Shows Ethanol Impact On Retail Ag Service Sales