Don’t Miss the Biofuels Financial Conference

Screen Shot 2014-07-18 at 12.23.20 PMDon’t miss the annual Biofuels Financial Conference: Climate of Opportunity hosted by Christianson & Associates. This year’s event takes place August 27-28, 2014 in Bloomington, Minnesota. The conference is aimed at plant managers, board members, plant CFO’s and more.

This year’s featured session is Expanding Beyond the Baseline. Industry experts will provide critical information about financial opportunities and options available for ensuring that your organization explores all avenues for maximizing the value of your plant’s production capabilities. Topics will cover:

  • Jonathan Olmscheid of Christianson & Associates will provide background on grandfathered volume and on the valid pathways to maximize RIN value beyond your plant’s grandfathered production volume. Since the export market provides another avenue for ethanol sales and thus increased production, Olmscheid will also touch on some key points about the export market and Canadian RINs.
  • Experts from plants and from Merjent will describe in detail the process of petitioning for pathways using two advanced technologies, from an engineering perspective as well as a general plant management perspective.
  • Paula Emberland of Christianson & Associates will review best practices and formulas for evaluating such improvement projects including diversifying co-products and improving processes, to calculate ROI, and an expert from Hydrodynamics will discuss, as an example, their bolt-on biodiesel production technology.

Early bird registration ends July 21. Click here to learn more about the Biofuels Financial Conference and to register online.

QCCP-Syngenta Collaboration Produces Cellulosic Ethanol

Syngenta and Quad County Corn Processors (QCCP) are collaborating to produce cellulosic ethanol from corn kernels as well as to license the technology to other ethanol plants. The first-of-its-kind technology is known as Adding Cellulosic Ethanol and was developed by QCCP, who expects to produce one million gallons of cellulosic ethanol in 2014 and two million gallons in 2015.

This breakthrough was made possible through the integration of Adding Cellulosic Ethanol technology at QCCP, a 35 million gallon per year capacity ethanol production facility. The introduction of the technology Delayne Johnson Quad County Corn Processors will enable QCCP to increase ethanol yield per bushel by six percent, produce an additional two million gallons of cellulosic ethanol per year and realize a number of other important benefits including increased production of corn oil and distillers grains (DDGs).

Delayne Johnson, CEO of QCCP discussed the technology during a press conference held at the Iowa Speedway last Friday. The event was part of the American Ethanol 200 presented by Enogen sponsorship. The NASCAR Camping Truck World Series races on E15.

“Adding Cellulosic Ethanol technology will help us to increase the protein content of dried distillers grains (DDGs) by 40 percent, improve corn oil extraction by 200 percent and realize more ethanol out of the same kernel of corn,” said Johnson. “The commercialization of this technology represents a major advance in the production of cellulosic ethanol. For example, Adding Cellulosic Ethanol technology could produce one billion gallons of cellulosic ethanol by converting the corn kernel cellulose from corn currently being processed in existing dry grind ethanol plants. And, once hemicellulosic yeast is FDA-approved, Adding Cellulosic Ethanol will be capable of producing an additional one billion gallons – all from corn already being processed.”

Johnson said tests have also shown that Adding Cellulosic Ethanol technology, in conjunction with Enogen® trait technology, will deliver significant benefits to ethanol plants beyond what can be achieved through either technology alone.

“The combination of Adding Cellulosic Ethanol and Enogen corn is expected to generate significant synergies when used together in dry grind ethanol plants,” Johnson added. “It will produce advanced and cellulosic ethanol while decreasing natural gas usage, increasing ethanol throughput and reducing an ethanol plant’s carbon footprint. These advantages, combined with higher protein DDGs and increased corn oil production, make the technology package appealing for ethanol plants looking to improve their bottom line.”

Jack Bernens SyngentaCellulosic Ethanol Technologies is a wholly-owned subsidiary of Quad County Corn Processors. Earlier this year, Syngenta announced an agreement with Cellulosic Ethanol Technologies to license Adding Cellulosic Ethanol technology to ethanol production facilities.

“Ethanol is helping America reduce its dependence on foreign oil, lowering prices at the pump, improving the environment with lower emissions, and growing the economy with jobs that can’t be outsourced,” said Jack Bernens, head of marketing and stakeholder relations for Enogen Trait Technology at Syngenta. “The combination of Adding Cellulosic Ethanol technology and Enogen could represent the next leap forward for ethanol production.”

Listen to my interview with Delayne Johnson here: Delayne Johnson interview

Visit the 2014 American Ethanol 200 presented by Enogen photo album.


Lincolnland Agri-Energy Celebrates 10 Years

Lincolnland Agri-Energy is celebrating its 10th anniversary this year. The Palestine, Illinois-based ethanol plant is now producing 57 million gallons of ethanol per year and employs 41 local residents. In 10 years, the ethanol plant has produced 470 million gallons of ethanol. Over the weekend, Lincolnland Agri-Energy hosted an open house for the community to celebrate its milestone.

Since they began operating in 2004, Lincolnland has actively taken steps to develop and expand their facilities. They broadened into corn oil extraction, added a fermenter, and implemented selective milling technology.

Lincolnland Agri-Energy“We are proud to produce cost-saving, renewable ethanol that furthers America’s energy independence. Lincolnland’s ethanol production facility has helped revitalize the community, create demand for our local farmers, and save Illinois drivers money at the pump,” said Eric Mosbey, general manager of Lincolnland Agri-Energy. “This is an exciting day for everyone involved in making Lincolnland a success. The past 10 years of production would not have been possible without the support of our stakeholders, the dedication of our employees, and the cooperation of the local community. We look forward to another 10 years.”

The ethanol plant has fostered an active presence in the local community by hosting elected officials including then-Senator Barack Obama (D-Ill.) and Congressman John Shimkus (R-Ill.). Both elected officials were given a warm welcome as they learned more about ethanol production and the impact it has on the local community. The company also partners with the local junior college to offer internships and donate equipment so students can learn more about the ethanol production process. Lincolnland supports many local programs and is a long-time sponsor of the annual Labor Day rodeo in Palestine, Ill.

“What started as an idea by a group of local farmers has turned into a successful ethanol plant that is run with integrity and gives back to the local community. The hours, days, and years of dedication can be seen in every aspect of this business today,” said Bob Dinneen, president and CEO of the Renewable Fuels Association. “This truly is a day to celebrate and honor the 10 years of hard work that has gone into making this business a success.”

Former Team Ethanol Driver Wins Iowa Corn Indy 300

Ryan Hunter ReayEver since I met Ryan Hunter Reay as the driver for the Indy Team Ethanol Car I’ve been following him as his racing gets better and better. He showed it this weekend when he roared to a dramatic finish and won the Iowa Corn Indy 300. Ryan is a winner of this race previously.

With the Indy cars running on the same fuel that we can put in our flex fuel vehicles – E85 – this renewable fuel was on the big stage again. Our Joanna Schroeder was on location for the American Ethanol 200 presented by Enogen, NASCAR Camping World Truck Series, on Saturday and will have some stories to share from that event as well.

#51 Eric Jones Wins American Ethanol 200

Erik Jones No 51 winner of 2014 American Ethanol 200 presented by SyngentaErik Jones driver of the No. 51 Toyota Tundra for Kyle Busch Motorsports held off Brad Keselowski Racing’s Ryan Blaney for the win of the NASCAR Camping World Truck Series American Ethanol 200 sponsored by Enogen.

Jones said during Victory Lane, “Glad we could get out and command the race and bring it home.” Jones led 131 of the 200 laps dominating the 3/4 mile track and lapping several other drivers. This is his second NASCAR Camping World Truck Series win of the season.

Jones was given the award and congratulated for his win in Victory Lane by David Witherspoon, head of renewable fuels at Syngenta. All the drivers in the series compete with Sunoco’s green E15 racing fuel – the same E15 blend of ethanol that consumers with cars manufactured after 2001 and newer can use. To date, NASCAR has raced more than 6 million miles with E15.


Visit the 2014 American Ethanol 200 presented by Enogen photo album.

Syngenta Donates $108K for Flex Fuel Infrastructure

During the American Ethanol 200 presented by Enogen taking place at the Iowa Speedway today, Syngenta announced that they are donating $108,000 to the renewable fuels industry to make flex fuels more widely available. The funds will be used for flex fuel pump infrastructure to help bring more mid-level ethanol blends such as E15 and E30 along with E85 available to consumers. The donation is part of a three-year commitment, known as the $1 per acre donation, announced in 2013 to contribute $1 to the ethanol industry for every acre planted with Enogen trait technology.

Syngenta 2014 $1 per acre donationIn addition to this year’s $1 per acre donation, Syngenta is also working with Iowa FFA chapters in a collaborative effort to match those dollars through a fund raising initiative taking place during the American Ethanol race weekend.

“Syngenta is pleased to continue its support for the ethanol industry by donating $1 for every acre of Enogen® seed planted during 2014 – and to be partnering with the FFA to make that donation go even further,” said David Witherspoon, head of Renewable Fuels at Syngenta. “Last year, the money was used to defend the Renewable Fuels Standard. The focus of this year’s donation – and matching dollars – will be to make flex fuels more accessible and provide consumers with a choice at the gas pump.”

According to Growth Energy, more than 170 million cars – those manufactured since 2001 – are eligible to use E15. And, there are more than sixteen million flex fuel vehicles on the roads today, with more on the way. Witherspoon added that helping the industry expand its flex fuel pump footprint will enable consumers to have a choice to purchase a superior higher octane fuel, and pay less.

“Clearly, we have the vehicles capable of using blends higher than E10 – but consumers need greater access to stations capable of providing it – and the petroleum marketing industry’s support to make that access a reality,” Witherspoon said. “The widespread availability of flex fuel vehicles – as well as those eligible to use E15 – demonstrates that there is a market ready for a less expensive, higher octane, more environmentally friendly alternative fuel.”

Listen to my interview with David Witherspoon here: David Witherspoon interview

Visit the 2014 American Ethanol 200 presented by Enogen photo album.


ACE Panel Focuses on Int’l Ethanol Opportunities

The 27th Annual Ethanol Conference is fast approaching and this year a key focus will be examples of expanding international ethanol markets. American Coalition for Ethanol’s (ACE) conference will take place on August 4-6, 2014 in Minneapolis, Minnesota.

ACElogoShannon Gustafson, ACE director of strategic projects, says the panel will focus on the international sales and marketing opportunities that are available to domestic ethanol producers who are looking to tap into foreign markets. The panel will include Gene Griffith of Patriot Renewable Fuels, Chad Martin of Eco-Energy and Clayton Haupt of CHS Inc.

“This panel will provide valuable perspectives from both the producer and marketing sides of the aisle. New developing markets for ethanol aren’t just here in the U.S. anymore. Consumer demand for ethanol is growing across the globe, and this panel will highlight the potential for domestic ethanol producers to develop new revenue streams and new markets for the ethanol industry,” said Gustafson.

The ACE Conference will also feature an Innovators panel of four domestic ethanol producers who are adding new processes and technologies to their existing ethanol plants to differentiate themselves from the pack, a Retailer Roundtable involving gas station owners who are making money and attracting new customers by selling higher blends of ethanol fuel, and other topics like the future of ethanol blended fuels, a look at the proposed regulations in the Food Safety Modernization Act, and an examination of rail regulations and possible long-term improvements of the domestic rail system.

More information on the 27th Annual Ethanol Conference can be found here. Click here to register.

Ethanol & Corn Production Up, Food & Gas Prices Down

Growth Energy is attacking the myth that ethanol production increases food prices.

Tom Buis, CEO of Growth Energy notes that time and again, Big Oil, big Food and special interests are attacking the ethanol industry and placing blame on them for rising food prices. “But when you look at the facts, nothing could be further from the truth. Recently, there has been a surge in ethanol production, while at the same time corn prices have been falling. Currently, corn is trading at $3.99, half the cost of Growth_Energy_logo-1what it traded for two years ago, yet food prices continue to rise because the cost of oil continues to climb. In fact, a recent World Bank study outlines how crude oil prices are responsible for 50 percent of the increase in food prices since 2004.”

Buis continued by noting that while Big Oil continues its “fear mongering” about the use of ethanol, American Consumers have just experienced a six year high in gas prices over the 4th of July weekend. In fact, he said, gas prices continue to stay at near record prices while ethanol is trading around one dollar per gallon below the cost of wholesale gas.

“Clearly global political unrest is once again responsible for driving consumer fuel prices higher, ” said Buis. “And, because of Big Oil’s monopoly over the fuels market, consumers currently have to pay more to drive to the store and the hits keep on coming when they check out at the grocery line! What I find interesting is that while Big Oil and Big Food continue to propagate the same old myths about food and renewable fuels, they are not as forthcoming when it comes to explaining to the public why they are making record profits on the backs of American consumers.”

“As President John Adams once said, ‘Facts are stubborn things.’” “Clearly,” said Buis, “this is the case for Big Oil, Big Food and their cronies, who are doing everything in their power to find a straw man to divert attention away from their excessive appetite for increased profit margins at the expense of hardworking American families.”

Brazil Airline Plans to Use Renewable Jet Fuel

gol-airBrazil’s GOL Linhas Aéreas Inteligentes airline has signed a memorandum of understanding with Amyris that could pave the way for GOL commercial flights to soon use Amyris renewable jet fuel.

Amyris-logo (1)Under the memorandum of understanding, GOL and Amyris will work together to establish a framework for bringing Amyris renewable jet fuel produced from Brazilian sugarcane to GOL’s commercial flights following regulatory approvals and validation by standard-setting bodies, including ASTM International and Brazil’s Oil, Gas and Biofuels Agency (ANP).

The partnership, under of auspices of the Brazilian Biofuels Platform, an industry and government-supported initiative to encourage the use of renewable fuels in aviation, was announced at Brazilian Aviation Day celebration, which included participation of Brazil’s Secretary of Civil Aviation, Minister Moreira Franco, and a number of industry stakeholders including Brazilian Airlines Association (ABEAR), Brazilian Biodiesel and Biojet Association (UBRABIO), GE, and Boeing among others.

Syngenta & FFA Team Up for American Ethanol 200

Syngenta is joining forces with several Iowa FFA chapters during the upcoming American Ethanol 200 presented by Enogen on Friday, July 11-12, 2014. The team will be helping to increase awareness of the benefits of American ethanol as well as raise funds to support flex-fuel availability. The funds raised by the FFA members will be matched by race-sponsor Syngenta.

Renewable fuels are an essential part of the American energy equation, benefiting American Ethanol 200 Presented by Enogenconsumers, farmers and American energy independence,” said David Witherspoon, head of Renewable Fuels at Syngenta. “Ethanol, whether from corn or other biomass sources, is an energy source for today and tomorrow driving economic growth and innovation.

According to Growth Energy, there are more than 16 million flex fuel vehicles on America’s highways today. There are also more than 2,800 E85 fueling stations across the country, with 450 having flex fuel pumps offering mid-level ethanol blends, and more than 80 locations in 14 states that offer E15. Investments in flex fuel pump infrastructure are needed to support continued growth and help to expand the market for ethanol.

Witherspoon added, “For more than 45 years, Syngenta has demonstrated its commitment to the future of agriculture through its partnership with the National FFA Organization. We are proud to be partnering with local FFA chapters in Iowa to tell the ethanol story – and to raise money to make flex fuels more widely available by investing in flex fuel pump infrastructure.”

DomesticFuel.com will be bringing readers live coverage from American Ethanol 200 presented by Enogen. This is the second year Syngenta has sponsored the race.

Georgia State Fleet Looking to Ramp Up With Ethanol

The Georgia Alternative Fuel Road Rally has ended after two weeks of crisscrossing the state to promote alternative fuels. According to the FlexFuel Awareness Campaign, the success of the rally could increase the use of ethanol in FFVs.

Todd Sneller talks ethanolTodd Sneller, administrator of the Nebraska Ethanol Board and a board member of the FlexFuel Awareness Campaign, spoke with government officials and fleet managers throughout the state and visited four cities last week. “Over the course of two weeks our team met with nearly three hundred fleet management personnel and local municipalities to provide them with information on the ethanol option,” said Sneller. “I am pleased to report that the Georgia state Government is preparing to energize the E85 initiative at the state level. The state has nearly five thousand FFVs in service but they need to facilitate more efficient fuel supply logistics. Several large county fleets are also moving toward E85 since we explained the potential cost savings.”

The Clean Fuels Development Coalition and the Clean Fuels Foundation, Growth Energy, the Kansas and Nebraska Corn Growers, and a number of agriculture and ethanol supporters were among the sponsors of the tour which is designed to increase consumer and fleet operator awareness for alternative fuels. The FlexFuel Awareness Campaign is focusing on the FFvmessage that high level ethanol blends and FFVs are an option for private and government fleets and that they can be very competitive among the family of legally defined alternative fuels.

Sneller noted that fleet managers are looking to use cleaner fuels within the tight budgets they are facing. Ethanol continues to offer attractive pricing but an inefficient fuel delivery system is subverting the potential price advantage to fleet managers and consumers. In addition, there is a great need for consumer awareness and to work with retail outlets that serve both fleets and individual consumers.

“As part of an ‘all of the above’ approach, this Road Show showcases all the alternative fuels, and they all have their strengths and advantages in a given situation. We are pleased to be part of this successful effort and make sure biofuels like ethanol are in the mix,” Sneller concluded.

Solutions to Threat Oil Poses for Armed Forces

A new video offers solutions to the threat oil poses for America’s armed forces and the nation’s security. The video was developed by the Union of Concerned Scientists (UCS) and the Truman National Security Project. The new video details the growing danger of oil use to the country’s national security. The U.S. Department of Defense is the world’s largest institutional oil consumer, using more than 100 million barrels every year to power ships, vehicles, aircraft, and ground operations. That’s enough oil to drive around the Earth more than 4 million times. According to the two organizations, this high use leads to greater unpredictability for missions, especially given oil’s vulnerability to price swings on the world market.

“Moving fuel on the battlefield is dangerous and expensive,” said Michael Breen, a former Army captain and executive director at Truman. “A ten dollar increase in the price of a barrel of oil costs the military $1.3 billion — money we can’t use to accomplish our mission and protect our troops.”

The groups argue that despite oil industry advertising championing new domestic production, so called “new oil and gas” resources aren’t really new at all. And they are only available because the oil industry is now desperate enough to go after dirtier, more difficult and expensive oil than they were before. They they said is neither a sustainable solution for our armed forces or our country.

“As the era of cheap and easy oil comes to an end, the oil industry’s desperation for continuing profits has led to more and more destructive practices that are not solving the problems associated with oil use,Hybrid Humvee” said Siv Balachandran, an engineer and oil analyst at UCS. “The real solution is to use less oil.”

Balachandran and Breen noted that the armed forces are adopting new, innovative technologies to reduce oil use while creating a stronger, more effective fighting force. For example, the Navy uses biofuels made from algae and other advanced sources, while the Army is powering Humvees with hybrid-electric engines. These technologies could benefit civilians too.

“The country is already making progress on this front, with federal and state policies helping cars go farther on each gallon of gas and putting thousands of hybrid and electric vehicles on the road — saving the country money while reducing emissions and creating jobs, but the work is not done,” said Balachandran. “By supporting policies that cut oil use even further, we’ll keep America healthier, wealthier, and more secure.”

Breen added, “As the largest institutional consumer of fuel in the world, the U.S. military is leading the way in reducing oil use and investing in renewable options. That’s good for America’s budget and for national security. Our communities – the veterans and national security leaders of Operation Free, and the scientists of UCS – are united in supporting the military’s innovative clean energy solutions.”

Corn Interns Educate About E85 Cost

Illinois CornLet’s put those interns to work. That’s what Illinois Corn is doing. Interns Tim Marten, a student at SIU-Edwardsville, and Elizabeth O’Reilly, a student at ISU, have been tasked with creating short videos that promote corn. The internships are funded by two communications scholarships from the Illinois Corn Marketing Board. Here’s an example of one of them below. You can find others here.

The first video highlights how gas prices are determined, illustrating the cost that E85 SHOULD be at the pump when priced appropriately.

Nebraska Ethanol Sector Leads Manufacturing Wages

Nebraska Ethanol Economic ImpactAccording to Nebraska Department of Labor’s Quarterly Census of Employment and Wages Program, over the last decade, Nebraska’s ethanol production sector outpaced all other manufacturing groups in the state in terms of wages earned. For example, in 2013 the average annual wage in the ethanol sector was $59,541 while the average for all other manufacturing sectors was $39,966.

“Nebraska’s ethanol industry now has twenty-four operating plants located across the state with the capacity to produce more than two billion gallons annually,” said to Todd Sneller, administrator of the Nebraska Ethanol Board. “The impact of ethanol production goes far beyond rural Nebraska. Virtually every sector of the state’s economy benefits from ethanol’s growth. Economic benefits accrue to technology and manufacturing sectors that provide software and sophisticated equipment to the agricultural sector that provides the raw materials processed in the plants.

Sneller added, “A vibrant agricultural economy is a major component of Nebraska’s economic success and the growing importance of ethanol is particularly notable. The ethanol industry generates 7,700 jobs, increases Nebraska’s annual economic base by $5.8 billion, and pays more than $38 million in local and state tax revenues each year.”

Industry Highlights Flaws in CBO Report

In an update to a story posted last week regarding the new CBO report, “Renewable Fuel Standard: Issues for 2014 and Beyond,” more renewable energy industry representatives are speaking out regarding what they say are flaws in the report.

Tom Buis, CEO of Growth Energy said of the report, “This report looks at unrealistic scenarios and completely ignores the very goals of the Renewable Fuel Standard (RFS), which are to decrease our nation’s dangerous dependence on foreign oil, create jobs and spur economic growth and investment, and improve our environment, all while offering consumers a choice and savings at the pump. The CBO report simply shrugs off these critical policy goals contained in the RFS by noting that, ‘CBO did not account for that effect in this analysis.’

CBO 2014 RFS reportBuis also pointed out the ethanol is currently trading a dollar less than gasoline on the Chicago Board of Trade, which the CBO fails to acknowledge. The report also fails to consider, said Buis, the 40 year history of volatile gas prices and also ignores the effect the current turmoil in Iraq. However, Buis points out, increased domestic fuel production of fuels such as ethanol and a decrease on dependence of foreign oil would help provide stability and reduce the price hikes in gas prices at the pump.

“Clearly, this report is agenda driven and ignores the facts. Wild and statically unrealistic conclusions such as these show just how flawed the majority of this report is, and why it should not be taken with any level of seriousness,” added Buis. “It seems to me that the CBO got only one thing right in this assessment, and that is with regards to the production of ethanol from corn and how it has virtually no impact on the price of food. Yet, again it is flawed as it fails to highlight that the true driver of food costs is the price of oil.

The National Farmers Union (NFU) was also unhappy with the report and said that CBO’s claim that repealing the RFS would reduce gasoline prices is “simply false”. “The RFS has reduced consumer demand for oil, and the study fails to take that into account. It is unfortunate that CBO, which is supposed to be objective, released such a flawed study that does not take into account the reality of fuel markets,” said NFU Senior Vice President of Programs Chandler Goule.

“Study after study show that the RFS is saving consumers money. E85prices.com recently released data showing that consumers filling up with E85 can save an average of $0.61 less per gallon,” Goule continued. “The RFS is a successful policy tool that decreases our nation’s reliance on foreign oil, creates economic opportunities in rural America, and effectively decreases the greenhouse gas footprint of the transportation sector. CBO should have taken all of these benefits to consumers into consideration when performing the study.”