Domestic Fuel

Eight term Iowa congressman Leonard Boswell is continuing to support renewable fuels in his state despite losing his re-election bid in re-districting last year to Tom Latham.

Boswell attended the Iowa Renewable Fuels Summit last month because it is something he says he cares deeply about. “I am so wound up in things like renewable fuels, it’s just one of my passions,” he said during an interview at the summit. “I will participate somehow.”

The former Democratic congressman, who is a farmer, was disappointed that Congress was unable to get a farm bill passed last year. “We need a farm bill, you can’t plan if you don’t know the rules,” said Boswell, who believes the House did have the votes to pass the bill that came out of the agriculture committee but they were never given the chance.

Listen to interview with Boswell here: Former Congressman Leonard Boswell

IRFA Renewable Fuels Summit Photo Album

Despite facing major challenges in 2012, the ethanol industry still created more than 380,000 jobs and $43 Billion in Gross Domestic Product, according to the latest analysis conducted by Cardno-ENTRIX and commissioned by the Renewable Fuels Association (RFA).

“The study reaffirms that this is an important industry for the overall economy but more importantly for rural America,” said study author John Urbanchuk at the National Ethanol Conference where the study was released. According to Urbanchuk, the production of the estimated 13.3 billion gallons of ethanol in 2012 directly employed 87,292 Americans. An additional 295,969 Americans found work in positions indirectly affiliated with or induced by ethanol production. “Research and development activities are part of that as well,” he said. “That’s a very vital aspect of this entire industry as we move forward.”

Even with the drought last year, domestic ethanol production of 13.3 billion gallons was the second highest annual production level in history, helping to displace 465 million barrels of imported oil worth $47.2 billion.

Listen to my interview with Urbanchuk here: NEC 13 John Urbanchuk interview

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

Representatives from General Motors, Toyota, Honda, Volkswagen and Mercedes Benz talked “Future Fuels and Higher Octane” at the National Ethanol Conference last week in Las Vegas.

Kristy Moore, Vice President, Technical Services, Renewable Fuels Association moderated the panel and said the manufacturers are facing some real challenges.

“They are under significant pressure to create a vehicle that meets these regulatory requirements and meets a 54.5 fleet economy MPG by 2025,” adding that consumers don’t want to give up the size and convenience their SUVs are giving them now.

Coleman Jones, Biofuel Implementation Manager, General Motors, pointed to Brazil, where that country made the regulatory and tax changes in favor of E100 vehicles but faced some real challenges when oil prices fell dramatically, and consumers became worried whether they could get the high-blend fuels and use those vehicles. That’s when automakers recognized being flexible was the way to go. “In 2003, General Motors and Volkswagen introduced flex-fuel vehicles. These proved to be spectacularly successful in the marketplace. This is what the customer wanted.”

Matthew Kevnick, Senior Principal Engineer, Toyota Motor Engineering & Manufacturing N.A. talked about how his company will be incorporating E15 into its owners manuals. Honda North America’s Vice President of Government and Industry Relations, Ed Cohen, said they want electric and fuel cell vehicles. Stuart Johnson, Senior Manager, Volkswagen Group of America, told the gathering they are releasing a full line of gasoline engines and incorporating FFVs, while Bill Woebkenberg, U.S. Fuels Technical and Regulatory Affairs, Mercedes-Benz Research & Development North America, Inc., said his company is interested in higher octane with higher level blends of ethanol.

Listen to the panel discussion here: NEC 13 Car Panel

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

Citing a need for increasing jobs and combating climate change, President Obama pledged to do more to “speed the transition to more sustainable sources of energy” during his 2013 State of the Union address.

Four years ago, other countries dominated the clean energy market and the jobs that came with it. And we’ve begun to change that. Last year, wind energy added nearly half of all new power capacity in America. So let’s generate even more. Solar energy gets cheaper by the year — let’s drive down costs even further. As long as countries like China keep going all in on clean energy, so must we.

Now, in the meantime, the natural gas boom has led to cleaner power and greater energy independence. We need to encourage that. And that’s why my administration will keep cutting red tape and speeding up new oil and gas permits. That’s got to be part of an all-of-the-above plan. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and our water.

Although there was no mention of biofuels in the speech, both ethanol and biodiesel organizations issued statements stressing their importance for the nation in achieving the president’s goals. “Biofuels can provide the eco-boost the U.S. economy needs,” said Renewable Fuels Association president and CEO Bob Dinneen. ““I am pleased that President Obama will continue to pursue policies that increase the use of cleaner, renewable energy, which is better for our environment and the air we breathe,” Growth Energy CEO Tom Buis said. Anne Steckel, vice president of federal affairs at the National Biodiesel Board, added that the biodiesel industry is poised to play a growing role in cutting greenhouse gas emissions. “Biodiesel is a practical, cost-effective and bipartisan solution that’s here today to address this problem,” Steckel said.

As always, the Global Perspectives and Washington Insiders panels at the National Ethanol Conference were as entertaining as ever. The panels routinely feature representatives from other organizations that may not share the same viewpoint of the Renewable Fuels Association (RFA), allowing the opportunity for some interesting dialogue.

Global Renewable Fuels Alliance spokesperson Bliss Baker served as the moderator/referee for the global panel which featured RFA CEO Bob Dinneen; Canadian Renewable Fuels Association president Scott Thurlow; Rob Vierhout, Secretary General of ePURE; UNICA CEO Elizabeth Farina; and Poul Ruben Andersen with Novozymes A/S.

Noting the panel placement of Canadian Thurlow between Dinneen and Vierhout, Baker commented, “Some of you may be familiar with Canada’s tradition of peacekeeping,” he said. “Scott may have to assume that role of peacekeeper when we talk about our first issue” which was Europe’s trade challenge to U.S. ethanol imports. “I find it a little bizarre that we are in this spat that we are in today, attacking one another,” Baker said, throwing the floor open to Veirhout to explain “what were you thinking?”

Listen to the panel here: NEC 13 Global Panel

This year’s Washington Insiders panel included (L to R) – Marty Durbin, Executive Vice President, American Petroleum Institute; Shane Karr, Vice President, Federal Government Affairs, Alliance of Automobile Manufacturers; Louis Finkel, Executive Vice President, Government Affairs, Grocery Manufacturers Association; and James Massie, Principal, The Alpine Group (the “insider’s insider”).

Interesting exchange on the panel came between Dinneen and GMA’s Finkel regarding the impact of the Renewable Fuel Standard. Challenging Finkel’s claim that the production of corn ethanol under the RFS has had a “significant” impact on food costs, Dinneen asked if he would say that oil prices also have a significant impact on the price of food. “I don’t think it has a significant impact,” Finkel replied. “I think it has an impact on the cost of transporting our food.”

“You’re a good advocate for your industry,” Dinneen responded.

Listen to the whole panel here: NEC 13 Insiders Panel

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

The ICM Advanced Oil Separation™ System (AOS™) will be deployed at Abengoa Bioenegy plants Madison, Illinois and Mt. Vernon, Indiana.

The AOS™ is a specially-designed combination of equipment that utilizes an ICM-proprietary, patented process to maximize the recovery of non-food-grade bio-oil from emulsion concentrate after the centrifugal separation of mid-stillage (syrup). Installation of the two corn oil extraction systems is expected to occur later this year.

ICM’s AOS™ will enable the recovery of a significant quantity of corn oil per bushel of corn processed, enabling the Madison and Mt. Vernon facilities to generate additional sources of revenue.

ICM Director of Sales & Product Management Brock Beach said, “We are thrilled to collaborate with Abengoa Bioenergy to deliver corn oil extraction technology and support corn oil’s expansion into higher-value co-products. The investment in our AOS™ technology affirms the shared vision of pursuing sustainable development efforts for the global renewable energy industry.”

It’s ironic that the “Phantom Fuels Reform Act of 2013″ was introduced in the Senate on Thursday at the same time a panel discussion on “Dispelling the Myth of the Phantom Fuel” was going on at the National Ethanol Conference where four different cellulosic biofuels companies talked about how they will be making commercial quantities of the fuel this year.

The legislation, which would have an impact on the Renewable Fuel Standard (RFS), was introduced by Sens. Jeff Flake (R-Ariz.), David Vitter (R-La.) and Michael Crapo (R-Idaho), following the introduction of its House companion yesterday by Reps. Gregg Harper (R-Miss.) and Jim Matheson (D-Utah).

“The legislation wants to make the RFS reflect the marketplace instead of push the marketplace, which is what the oil industry wants because that would short circuit the RFS,” said Brooke Coleman, executive director of the Advanced Ethanol Council.

Listen to an interview with Brooke here: AEC's Brooke Coleman

One company that expects to be producing cellulosic ethanol very soon is INEOS Bio, according to vice president Dan Cummings. “We finished construction on our first facility in Vero Beach, Florida, have commissioned it and now we’re in the final start up phase moving towards making cellulosic bio-ethanol,” said Cummings. “We’re making it out of waste – agricultural, yard waste and vegetative waste.”

Target date to be on line is this quarter, moving toward full production this year with a capacity of eight million gallons. “It’s a first of a kind technology in the world and we look to license and build other plants globally,” Cummings said.

Listen to my interview with Dan here: INEOS Bio VP Dan Cummings

Others on the “Phantom Fuel” panel included Beta Renewables CEO Guido Ghisolfi, Poul Ruben Andersen with Novozymes North America, and Martin Mitchell of Clariant.

Listen to the whole panel here: NEC Phantom Fuel Panel

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

The Environmental Protection Agency has announced a solution to address specific concerns about retail sales of 15% ethanol (E15) ensuring that gasoline with up to 10 percent ethanol is available at each station when also offering the higher octane fuel E15.

Renewable Fuels Association (RFA) Director of Market Development Robert White explains that the solution will eliminate the need for a four-gallon minimum fueling transaction when E15 is sold from the same hose as E10, E0 or both.

Advocates for motorcyclists and small engines had expressed concern that EPA’s four-gallon minimum requirement would make it difficult for those low volume customers to find fuel appropriate for their vehicles. With today’s announcement, their concerns have been eliminated. The configuration approved by EPA will recommend that retailers either sell E15 from a dedicated hose, or have at least one fueling position that does not have E15 available. This fueling position will be clearly identified, and other fueling positions will direct those seeking that option to the right place. EPA may ultimately approve more configuration options in the future.

Listen to Robert explain in this interview: RFA's Robert White

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

Members of the Renewable Fuels Association are on the road home from Vegas ready to continue driving the industry forward after another uplifting National Ethanol Conference.

About 1100 ethanol industry members attended the event, despite the challenging times facing them. “There’s a lot of enthusiasm here and there’s a lot of optimism,” said RFA CEO Bob Dinneen. “They are realistic about the fights coming forth but they are ready to fight and ready to make sure that Congress does not mess with the RFS.”

“I’m excited, I’m pumped,” Dinneen added.

Dinneen was pleased that Agriculture Secretary Tom Vilsack was able to address the conference again this year and appreciated his message that the industry is under attack because it’s winning, not because it’s losing. “We are really challenging oil companies,” said Dinneen, noting that the ethanol industry is winning the “battle for barrel” and “we are going to win it for our children.”

Dinneen also commented on the “Phantom Fuels Act” introduced today by members of Congress from oil producing states. “These members should have been out here, they would have seen the phantom fuels and would have learned there is cellulosic development going on today,” he said.

Listen to my wrap up interview with Bob here: NEC Wrap up with Bob Dinneen

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

Representatives from corn growers, the oil industry, advanced ethanol and the investment community addressed the future of the Renewable Fuel Standard (RFS) during the 18th National Ethanol Conference.

The panel moderated by Geoff Cooper with the Renewable Fuels Association included National Corn Growers Association CEO Rick Tolman, John Reese with Shell Oil Products, Advanced Ethanol Council executive director Brooke Coleman, and Mark McMinimy with Guggenheim Securities.

Listen to the discussion here: NEC Future of RFS panel

NCGA’s Tolman told the audience that the corn growers believe the RFS has been a huge success but he does believe there are implementation challenges going forward and one he noted was the language that restricts corn from being considered an advanced biofuel. “The industry has a petition at EPA right now to see if we can have a pathway approved for corn fiber from the kernel as an advanced biofuel,” said Tolman, and in the future they hope to address the arbitrary restriction on corn starch as an advanced biofuel.

Tolman says the RFS will be a topic of discussion with corn growers at the upcoming Commodity Classic in Orlando later this month.

Listen to an interview with Rick here: NCGA CEO Rick Tolman

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

Agriculture Secretary Tom Vilsack went from the National Ethanol Conference to the National Biodiesel Conference today in Las Vegas.

Vilsack addressed a standing room only crowd during the final day of the 10th Annual National Biodiesel Conference & Expo in Las Vegas. Beginning his second term as part of the Obama Administration, prior to taking this position he was the Governor of Iowa. Vilsack has been a leader in the support of biofuels since taking office as Governor and has continued in his current role.

Vilsack said that the biodiesel industry is helping the country become secure through its innovation and products and also helping to create a new biobased economy.

There is a huge fight against the Renewable Fuel Standard (RFS). Vilsack noted that there are some who say it needs to be changed because it’s not reliable and not effective, when in fact it’s exactly the opposite. “This standard is working. It’s doing what’s its supposed to do. It’s helping to create an industry that supports jobs, improves incomes, reduces alliance on foreign oil, and gives consumers choice. It’s working,” said Vilsack.

He also noted that the reason why the biodiesel industry is being challenged is because they are winning. “Trust me,” he said. “If you were losing no one would be paying attention to you. But there is more work to do to meet these challenges.”

Vislack ended his remarks by giving the industry a couple of ideas. One of the most critical, he said, is that it is important to engage people at the state and local level to explain to them the benefits of this industry.

You have the capacity to reignite a new century of innovation and to help redefine and revitalize the American economy, said Vilsack. “And this is worth fighting for.”

Listen to Secretary Vilsack’s remarks at the biodiesel conference here: Industry Engagement Critical

2013 National Biodiesel Conference Photo Album

See more coverage on the Biodiesel Conference Blog

During the opening session on the second day of the Renewable Fuels Association’s (RFA) 18th annual National Ethanol Conference, Scott Zaremba, President of Zarco 66 Inc. and Zarco 66 American Fuels, received the “Industry Award” in recognition of his vision and commitment to expanding fuel choices for his customers in Kansas.

In July of 2012, Scott Zaremba became the first petroleum marketer in the United States to offer E15. Since that time, he has expanded E15 availability to seven stations throughout Kansas.

Zaremba explained, “I’m proud to be able to offer my customers a choice at the pump, especially when that choice helps Kansas drivers save money, clean the environment and support ethanol production jobs across the state of Kansas and throughout the Midwest. In Kansas, our state motto talks about getting to the stars through difficulties. Introducing E15 is a good example of blazing a new trail despite regulatory delays and resistance to break our addition to foreign oil. E15 is a win-win in my book. It is part of a domestic solution to energy independence.”

Listen to my interview with Scott here: Scott Zaremba at NEC 2013

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

Agriculture Secretary Tom Vilsack will be speaking live here at the National Ethanol Conference in Las Vegas at 8:00 am Pacific time. We will be live streaming and posting the recorded file shortly afterward – along with photos and audio.

Post Update: You can watch Sec. Vilsack’s remarks in the video – audio is posted below the video.

Video streaming by Ustream

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

A widely respected public opinion research firm had some good news for the ethanol industry at the National Ethanol Conference Wednesday.

In a poll commissioned by the Renewable Fuels Association (RFA) and conducted by American Viewpoint, 64 percent of adults polled said they supported the RFS, while just 25 percent are opposed.

Presenting her findings during a luncheon address at NEC, American Viewpoint president Linda DiVall said, “The ethanol industry has a compelling narrative to advance to consumers — it significantly reduces greenhouse gases, lowers our dependence on foreign oil, creates quality jobs, reduces fuel costs for Americans, and is serving to advance further innovations in renewable fuels.”

DiVall came up with four positive message components for the ethanol industry to utilize – green energy (targeting women and younger adults), oil companies still receive subsidies, ethanol creates jobs and reduces gas prices, and finally – call it a biofuel instead of ethanol. “Biofuel is seen as a more futuristic energy source than saying the word ethanol,” she said. “There are very positive images associated with biofuels.”

Listen to DiVall explain in this interview: Linda DiVall at NEC 2013

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album

The mantra of the U.S. ethanol industry should be “Don’t Mess with the RFS,” according to Renewable Fuels Association president and CEO Bob Dinneen.

Addressing 1,100 participants in the National Ethanol Conference in Las Vegas today, Dinneen said, “The state of the ethanol industry can be summed up in five words: under siege and fighting back.”

“American ethanol is engaged in a Battle for the Barrel,” said Dinneen. “The stakes are high; our adversaries are well-funded; and our challenges are legion.”

Expressing optimism for the future of American biofuels, Dinneen said, “The nay-sayers keep writing obituaries for cellulosic ethanol. But the real news is that, in 2012, the first commercial cellulose plant was completed and several others began construction. Ineos in Florida is producing cellulosic ethanol today. From Abengoa in Kansas to ZeaChem in Oregon, the future of the ethanol industry can now be seen.”

“The real story of 2012 isn’t that, sometimes, we got knocked down. The real story is that we kept on bouncing back,” said Dinneen.

Read his speech here, listen to or download below.
RFA CEO Bob Dinneen at NEC 2013

2013 National Ethanol Conference Photo Album

2013 NEC Golf Tournament Photo Album