Collin Peterson Honored for Ethanol Support

ace14-merle-collinThe American Coalition for Ethanol meeting in Minneapolis this week honored Congressman Collin Peterson of Minnesota with its highest award for supporters of ethanol, the Merle Anderson award. Anderson himself presented Peterson with the award, as well as an ethanol lapel pin and five dollars for his campaign.

Peterson says ethanol has been great for agriculture and he continues to fight for it in Congress. “It’s just been a tremendous success story in agriculture because it’s changed the marketplace so farmers can get a decent price for their corn,” he said. “We do have our opponents and they are still working to undermine things,” he continued, noting that just last week Rep. Bob Goodlatte (R-VA) attempted to bring up a bill to get rid of the RFS. “They want to go back to $1.85 corn and I tell them if they are successful they will rue the day because nobody can grow corn for $1.85.” Peterson says the only way farmers survived when prices were $1.85 a bushel was because of the government subsidy “and that’s gone.”

Peterson remains hopeful that the EPA will eventually come out with a better final rule on the 2014 volume obligations for the RFS. “I think the fact that they delayed this for now a third time shows they are listening,” he said. “It appears to me that they realize they made a mistake here and they’re trying to figure out how to undo it.” He thinks it could be next year before the rule is final, but “a delayed decision is better than a bad decision.” Interview with Rep. Collin Peterson (D-MN) at ACE Conference

27th Annual Ethanol Conference photo album

RFA Pumping up Ethanol for Motorcycles

sturgis-14-fuelThe Renewable Fuels Association is pumped up to provide some free 10% ethanol for motorcyclists attending the 74th annual Sturgis Motorcycle Rally this week.

RFA set up this morning for the Free Fuel Happy Hours taking place from 1–4 pm today through Thursday. This is the sixth year that RFA has had a presence at the legendary motorcycle event and the main meeting place at the Buffalo Chip campground.

On hand to educate the bikers and pump them up with free fuel is RFA director of market development Robert White, who took part in the Legends Ride on Monday morning at the Rally, riding his flex-fuel Harley during the week to promote the benefits of ethanol. RFA sponsored the seventh annual charity ride, which begins in Deadwood, S.D., with the proceeds going to benefit charities in the Black Hills region of South Dakota, including the Black Hills Special Olympics.

There’s a lot going on at the rally, but not much in the way of internet access, so we’ll have more from Sturgis when we get wired!

See all the photos from the rally and RFA’s involvement in the 2014 Sturgis Motorcycle Rally Photo Album

ACE President Optimistic About Ethanol Industry

ace14-alversonAmerican Coalition for Ethanol president Ron Alverson of Dakota Ethanol says there are lots of reasons to excited about the ethanol industry right now.

“We’re just super competitive,” Alverson said in his opening comments at the 27th annual ACE conference, showing a graph indicating the positive price spread between ethanol and gasoline. “I think we’re building new markets because of that.”

ace14-ron-billThe new theme for ACE is Power by People and Alverson kicked off the conference by presenting the President’s Award to someone he believes is “one of the finest ethanol advocates” in the industry. That award was given to Bill Couser of Couser Cattle Company in Nevada, Iowa. “He immediately struck me as a very passionate advocate for agriculture and ethanol both,” said Alverson. Interview with ACE president Ron Alverson, Dakota Ethanol

27th Annual Ethanol Conference photo album

Increasing Ethanol Yield

cutc-14-novozymesOne way enzyme technology can help ethanol plants is by yielding more ethanol per bushel of corn.

At the recent Corn Utilization and Technology Conference, Nathan Kreel with Novozymes talked about Olexa, a unique enzyme designed for oil recovery. “We developed it mainly to enhance corn oil extraction for the customer, but we are seeing there are a lot of other benefits,” he said. That includes an increase in ethanol yield, better yeast health, and more efficient fermentation.

“The most important thing is that we see back end process improvements with an average of 13% oil increase,” Kreel said. “It’s a simple drop-in product that is added right to the fermentation and you can see improvements right when it’s used.”

Learn more in this interview: Interview with Nathan Kreel, Novozymes

2014 CUTC Photo Album

Oxygenate from Ethanol and Corn

xfxF Technologies Inc. is an advanced biofuel company that has developed a chemical process to convert corn or biomass plus alcohol (especially ethanol or methanol) into an oxygenate that can be blended with gasoline and diesel.

cutc-14-rob-randle“It’s a completely chemical process – no enzymes, no bacteria, no fermentation,” said Bob Randle of xF Technologies, who spoke at the recent Corn Utilization and Technology Conference. The end products are furoates – from either ethanol, methanol or butanol – that can then be used as oxygenates for fuel transportation to improve mileage, reduce emissions, increase lubricity, and more.

Randle says the technology offers co-location and add-on opportunities for ethanol and corn wet milling plants. “Because our primary feedstocks are corn and ethanol, or biomass and ethanol,” he said. “We can also be co-located with a cellulosic ethanol plant as well.”

Learn more in this interview: Interview with Bob Randle, xF Technologies

2014 CUTC Photo Album

Ethanol on the Road to Sturgis

Fueled with Pride 2014 Motorcycle RallyMany bikes are already rolling into the Black Hills of South Dakota ahead of the 74th Annual Sturgis Motorcycle Rally which officially kicks off on Monday. The Renewable Fuels Association (RFA) will once again be there at the Sturgis Buffalo Chip campground to promote ethanol to the motorcycle set. Approximately 500,000 motorcyclists from all over the world gather in Sturgis, S.D., for the week-long rally that offers a unique opportunity to promote the benefits of high-octane, low-cost ethanol.

Robert White, director of market development for RFA, says this year marks the 6th year that RFA has been involved in the annual Sturgis Motorcycle Rally and the Free Fuel Happy Hours are back by popular demand, offering motorcycle riders a free tank of E10 93-octane fuel. The fuel is brought in specifically for the rally and riders can receive their free tank at 1–4 pm Tuesday-Thursday, August 5-7. Robert says that they really just want to help educate the riders about using E10 in their bikes.

I’ll be attending the rally this year with RFA and looking forward to the Legends Ride as well as spending time at the Buffalo Chip Campground that turns into quite the entertainment junction where many of the concerts will be taking place. Domestic Fuel will have all your coverage from Sturgis Motorcycle Rally once again. Stay tuned!

Interview with Robert White, RFA

RFA to DOE: Update Your E85 Data!

Today the Renewable Fuels Association (RFA) is calling on the Department of Energy (DOE) to accurately account for all stations selling E85. According to RFA, the DOE’s Alternative Fuels Data Center is missing a vast number of E85 stations – nearly 1,000- after comparing the list to the “crowd-sourced” website E85Prices.com that lists 3,449 retail locations offering E85.

RFANewlogo“The AFDC database is way off in its reporting of E85 stations, and this is negatively influencing discussions over the 2014 Renewable Fuel Standard (RFS) blending requirements. It isn’t just a handful of stations that are missing; we are talking about the exclusion of hundreds of stations nationwide. In fact, they missed 40 percent of the stations that are included in other databases! That’s simply unacceptable,” said Bob Dinneen, president and CEO of the RFA.

In a letter sent to the DOE’s Office of Energy Efficiency & Renewable Energy, the RFA illustrates the central role of the database in crucial policy decisions, stating, “EPA’s mistaken belief that existing E85 refueling infrastructure is insufficient to distribute the 2014 RFS volumes specified in the statute is based in large part on information from the AFDC. As a result, the Agency wrongly proposed to reduce required renewable fuel blending volumes in 2014.”

Dinneen stressed the urgent need for updated, accurate information as the EPA decides the final 2014 RFS blending requirements. He noted, “Accurate data is the foundation of well informed decisions. The so-called ‘blend wall’ — the level at which oil companies claim they can no longer blend ethanol into gasoline — can be scaled through increased use of E85. Therefore, an accurate accounting of E85 stations distributing low-cost, renewable fuels is vital to informing the debate over RFS implementation.”

The letter concludes, “The correctness and completeness of the database has never been more important, as crucial policy and regulatory decisions are being informed by the information. Inadequate data leads to ill-informed policy decisions, which can have significant consequences for affected industries.

Kansas Ethanol Plant to Add Renewable Diesel Ops

EKAEA Kansas ethanol maker is going to integrate a renewable diesel operation into its facility. East Kansas Agri-Energy LLC (EKAE) says it will soon start building and hopes to complete construction within about a year of the 3 million gallon per year facility at its ethanol plant in Garnett, Kansas that will make renewable diesel from the corn distillers oil (CDO) already produced at the plant.

“This is about maximizing revenue, leveraging activities that we already do every day, and enhancing the value of products we already produce now,” said EKAE President & CEO Jeff Oestmann. “Adding renewable diesel capability aligns perfectly with our business strategy of diversifying our energy portfolio and creating additional enterprises that are sustainable on their own.”

“The main driver is to create greater value for our unit holders,” said EKAE chairman Bill Pracht. “We’ll be taking advantage of our experience and current facilities to create two biofuels out of one kernel of corn. Furthermore, we’ll be adding value to the corn oil we already produce.”

Oestmann said that EKAE already has a receptive market for this new fuel. “We have positive relationships with customers and within the biofuels industry that have come to know EKAE as a reliable and trustworthy supplier,” he said. “By using corn distillers oil we produce as the primary feedstock, we will have quality control that will underscore our reputation for quality in the marketplace.”

Company officials hope to double the 3 million gallon per year capacity sometime after starting operations.

White House Gathers Senate Dems on RFS Proposal

nbb-senatorsIn what could be seen as a sign that an unpopular decision is about to be rendered by the Obama Administration on ethanol and biodiesel, a select group of Senate Democrats have met with the White House. The Hill reports White House adviser John Podesta met with the group on Thursday to discuss the Environmental Protection Agency’s (EPA) plans regarding the Renewable Fuel Standard (RFS).

The senators said they wanted to discuss “urgent concerns” with the RFS, which requires that diesel and gasoline refiners mix a certain amount of renewable fuels such as biodiesel and ethanol into their traditional fuels each year. The Environmental Protection Agency proposed last year to keep the biodiesel volume in 2014 at least year’s level, despite an increase in biodiesel production, and reduce the ethanol volume.

The EPA has not yet finalized its 2014 volumes for renewables.

[Minnesota Senator Al] Franken and his colleagues took particular issue with the biodiesel mandate.

“Such a decision would not only harm the economic growth surrounding biodiesel production in our states, but would be a setback in our national efforts to continue boosting U.S. energy security while also reducing greenhouse gas emissions,” they wrote.

The National Biodiesel Board (NBB) seems concerned about the meeting as well and issued a statement from from Vice President of Federal Affairs Anne Steckel:

“While we are encouraged by these discussions, the biodiesel industry remains concerned that the Administration still appears to be considering a proposal that would backtrack from last year’s proven production and that threatens biodiesel plants around the country. The fact is that biodiesel is the most successful Advanced Biofuel under the RFS, yet it could see its production cut significantly. This meeting, which was originally requested by a diverse group of 14 Democratic senators from across the country, makes clear that there are serious concerns about the impact that the proposal would have on jobs and economic growth nationwide, in states from Rhode Island to Minnesota to Washington state. This is a critical decision, not just for the biodiesel industry but for the future development of clean, American-made renewable fuels that will help us reduce our dangerous dependence on petroleum.”

Many of those senators participating in this week’s meeting were also critical back in May on the Obama Administration’s proposal to cut the amount of biodiesel and ethanol to be mixed into the nation’s fuel supply, with some of the President’s staunchest backers calling it “disastrous” and a miserable failure of policy.

Grains Council Working on Ethanol Exports

usgrainscouncil1The U.S. Grains Council (USGC) is working on promoting exports of U.S. ethanol through a partnership between USDA’s Foreign Agriculture Service, Growth Energy and the Renewable Fuels Association (RFA).

“We’ve been working since late March, early April to determine which markets we’re going to do market assessments in and then next year we’ll shift into market development activities,” said Ashley Kongs, USGC manager of ethanol export program. The Grains Council is planning three regional market assessment programs this year, going to Japan and Korea in September, Latin America in November, and southeast Asia in early December.

Earlier this year, USGC participated in a trade mission to China with USDA Undersecretary Michael Scuse where they were able to discuss the possibility of ethanol exports to that country. “They visited with a Chinese ethanol plant and they had meetings with the National Energy Administration in China,” said Kongs. “Currently ethanol can only be sold in six designated markets in China for blending with fuel, but the group had discussions about the possibility of expanding ethanol use nationwide.” Kongs says while there are challenges in the Chinese market, the Grains Council sees great potential for the future to open the door for U.S. ethanol exports.

USGC continues to build on its success in promoting exports of the ethanol co-product distillers grains and will be again this year joining RFA in hosting the Export Exchange, an international trade conference focused on the export of U.S. coarse grains and ethanol co-products held every two years. Early registration for the event is open until July 31 and USGC and RFA members are eligible for discounted pricing.

EPA Hears Corn Grower Concerns About RFS

Members of the National Corn Growers Association (NCGA) meeting in Washington DC were able to share their concerns about the delayed rule on 2014 volume obligations under the Renewable Fuel Standard with EPA Deputy Administrator Bob Perciasepe.

epa-ncga“The number needs to be out, it’s really ridiculous,” said NCGA president Martin Barbre, pictured here on the right with Perciasepe. “He said ‘we’re behind time frame’ and we had some delegates stand up and say ‘you’re not behind time frame, you’re way late.'” The final rule was expected by the end of June but EPA officials say it is being delayed because of the massive volume of comments that need to be studied in order to make a decision.

Barbre says while they appreciate the fact that EPA is taking the time to make sure they make the right decision, delaying it until almost the end of the year causes problems in the market. “Sort of what has created this issue with RINS and that run up in the RINS price is the lateness of the oil companies getting the numbers,” said Barbre. “They’re supposed to have these number in the spring, they get them in the fall, and by the end of the year they have got to have met their obligations. So it puts them in somewhat of a bind.”

“We’re not usually on the side of defending the oil companies, but in this case they just need to get the numbers faster so they can get themselves where they need to be,” Barbre added.

Listen to Barbre’s comments here: Interview with NCGA president Martin Barbre

“Climate of Opportunity” Theme for Biofuels Conference

Screen Shot 2014-07-18 at 12.23.20 PMSome biofuels producers have had some profitable times in the last couple of years, and an upcoming conference will give attendees information on how to take advantage of the opportunities put before them. Nationally known accounting and consulting firm Christianson & Associates will host its 10th annual Biofuels Financial Conference with the theme “Climate of Opportunity,” Aug. 27-28, 2014 in Minneapolis, Minn. at the Bloomington Embassy Suites.

This year’s Biofuels Financial Conference is focused on the best ways to take advantage of the many opportunities to optimize financial health and stability in today’s changing biofuels industry. By understanding current policy and knowing all available options for improving and diversifying production, attendees will learn how to capitalize on current strengths, identify and shore up any potential weaknesses, and create a strategic plan for growth creates an ongoing climate of opportunity.

“It’s important for board members and financial decision-makers to understand the opportunities in the current liquid fuels marketplace,” said [John Christianson, CPA and Partner at Christianson & Associates]. “What is the impact of the latest legislation changes, what are the marketplace opportunities, what are the technology investments that will bring a plant successfully into the next generation?”

Those attending the conference will be able to network with and learn from biofuels professionals from across the industry. More information is available here.

Ethanol Report on Cost Analysis

ethanol-report-adA new analysis by the Renewable Fuels Association (RFA) shows that over the past four years, ethanol has been the most economically competitive motor fuel and octane source in the world.

rfa-cooper-headIn this Ethanol Report, RFA Senior Vice President Geoff Cooper gives some of the major findings of the report, talks about why it has particular relevance in the California market, and how the study suggests that the cost of producing ethanol in the US will continue to fall.

Ethanol Report on Cost Analysis

Subscribe to “The Ethanol Report” with this link.

What is the Difference Between Crude Oil & Ethanol?

RFANewlogoThe U.S. Department of Transportation (DOT) has released a new tank car proposal that is designed to enhance the safe transportation of hazardous materials, including ethanol and crude oil. Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA) expressed concern over the rule’s same treatment of crude oil and ethanol when ethanol has a strong safety record while the high volatility of crude oil from the Bakken is not adequately addressed.

However, Dinneen did applaud the Administration for adopting a comprehensive approach to increasing concerns about rising shipments of highly volatile crude oil on the nation’s railways. He noted that the approach outlined today appears to address prevention, mitigation and response related to crude oil derailments.

“Ethanol is a low volatility, consistent commercial product with a 99.997 percent rail safety record,” said Dinneen. “Unlike oil from fracking, ethanol is not a highly volatile feedstock of unknown and differing quality and characteristics being shipped to a refinery for commercial use. Before this proposed rule is finalized, the RFA looks forward to engaging the Department of Transportation in a constructive dialogue about these differences, and the need to have a practical and effective phase-in of these new standards,” added Dinneen. “In the meanwhile, the U.S. ethanol industry will continue to work with all parties to assure the safe and effective transport of this low-cost, domestic renewable fuel to markets all across the country.”

Ethanol Revving up for Sturgis Rally

sturgis-rfaFor the sixth year in a row, motorcycle enthusiasts from around the world will be able to learn more about ethanol, courtesy of the Renewable Fuels Association, at the famous Sturgis Motorcycle Rally.

About a half million motorcyclists will be converging on Sturgis, S.D., August 4-7 for the 74th annual Sturgis Motorcycle Rally, presenting an ideal opportunity for RFA to dispel misinformation concerning ethanol use in motorcycles. Among the ways RFA does that is “Free Fuel Happy Hours,” offering a free tank of E10 93-octane fuel to riders at the Sturgis Buffalo Chip campground. RFA is a major sponsor at the popular campground where the message “Ride Safe, Fuel Right” will be seen everywhere, including the main stage where this year’s concert line up includes Lynyrd Skynyrd, Collective Soul, Zac Brown Band, John Mayall, Alice Cooper, ZZ Top and Cheap Trick.

RFA also proudly sponsors the annual “Legends Ride” where proceeds are donated to local charities, including the Black Hills Special Olympics. All “Legends Ride” participants receive free “Fueled with Pride” giveaways and informational materials on ethanol before they embark on the ride that originates in Deadwood, S.D.

DomesticFuel will once again be there to bring all the sights and sounds to you. Check out last year’s photo album here.