USGC Helped Move DDGS Exports in 2014

usgc-winter-grayThe U.S. Grains Council (USGC) held its winter meeting last week in Costa Rica where more than 250 delegates met to take a look back at last year and assess export opportunities.

Chairman Ron Gray says one of big issues of 2014 was with the ethanol co-product distillers grains (DDGS) and China. “At the end of the year, our exports were one of the highest years for DDGS on record,” said Gray. “The Grains Council was instrumental in mitigating that process so that trade can continue.”

Gray, who is a farmer from Illinois, believes it’s important for producers to be involved in trade policy. “I think combines would be easier to fix than trade policy,” he said. “We try to address the next problem so we can keep trade moving.”

Gray says U.S. sorghum picked up some exports to China last year to pick up the slack caused by the biotech trait issue with corn, which allowed them to remain active in the market, but ultimately it’s the growing demand for corn that is benefiting farmers back home.

The Andersons Grain Group Head to Retire

Dennis Addis (left) and Neill McKinstray

Dennis Addis (left) and Neill McKinstray

The Andersons, Inc. Grain Group President Denny Addis has announced plans to retire in May. According to the company, Ethanol Group president Neill C. McKinstray will assume leadership over both groups at that time.

“Denny has a stellar 43-year record with The Andersons and during his tenure has exhibited faithful service and exceptional leadership,” says Hal Reed, Chief Operating Officer.

Addis began his career with the company in 1971 bagging fertilizer and loading trucks as a part-time employee while a student at the University of Toledo. He spent all but three of his 43 years in the Plant Nutrient Group, ultimately serving as the group’s president for 11 years. He has served as the president of the Grain Group since 2012.

McKinstray is a 39-year veteran with The Andersons, including more than 30 years working at increasing levels of responsibility in the Grain Group. In 2011 he was named as President of the newly-formed Ethanol Group, which he has led with great success.

Golden Grain Marks Billion Gallons of Ethanol

Golden Grain Energy in Mason City, Iowa is celebrating the production of its one billionth gallon of ethanol this month.

gge-billion-shirts“This is a huge occasion for the plant, the staff, and the community as a whole,” said Chad Kuhlers, Chief Operations Officer of Golden Grain Energy. “I believe we are the first single location ethanol plant in the country to reach this production mark and it couldn’t have been done without the support from the shareholders, community and the great work from our employees over the years.”

The ethanol plant, which started production in December 2004, celebrated the milestone on Monday during its annual meeting with special guests including Iowa Secretary of Agriculture Bill Northey and Senator Chuck Grassley (R-IA). Plant employees wore special t-shirts to note the special occasion.

gge-grassley“This achievement represents a lot of work from farmer to producer to truck driver. Each stage of production leads to a tremendously beneficial final product,” said Sen. Grassley.

“This remarkable milestone by Golden Grain Energy is a great opportunity to celebrate the tremendous impact this plant and the 42 other ethanol refineries have had in reducing our dependence on foreign oil, protecting our environment and boosting the Iowa economy,” added Northey.

That billion gallons of ethanol represents over 351 million bushels of corn and a nice boost for the local economy, according to American Coalition for Ethanol Executive Vice President Brian Jennings. “Golden Grain Energy has … paid out more than $2 billion dollars to corn farmers, suppliers and service providers, and employees, and returned nearly $137 million dollars to its investors,” said Jennings in a congratulatory statement.

Renewable Fuels Association (RFA) President and CEO Bob Dinneen was on hand at the company’s groundbreaking ceremony in 2003. “It has been a privilege to watch the company grow and thrive and I can’t wait to see where they will take it from here,” said Dinneen.

Golden Grain Energy has a nameplate capacity of 115 million gallons per year.

Murphy USA E15 Expansion Brings Call for Law

beale1The announcement by Murphy USA to offer a 15 percent blend of ethanol, E15, at more locations in Chicago is prompting a city councilman calling for an ordinance to support renewable fuel efforts in the city. Alderman Anthony Beale has been working for some time now to get an E15 ordinance on the book.

“While I welcome E15 to our region, it pains me that due to our 7-month process of debate, Chicago retailers have not had the ability to offer E15 first and therefore to more ably compete with suburban sellers. This news, as welcome as it is, underscores the need to make sure the market is similarly open to retailers in the city, where Big Oil currently has the ability to block this choice of fuels from the market.

“As a national distributor and retailer, Murphy USA can offer whatever products they like. Chicago retailers, on the other hand, are at the mercy of the Big Oil companies, who as we have seen through the thousands of dollars they’ve spent on ads, will go to any lengths to keep drivers dependent on fossil fuel, whatever the consequences for the health of our air and residents.

“It’s time to end the monopoly and stranglehold of the oil companies – who keep us dependent on foreign oil and give us high prices and petcoke in return. It’s time – for the good of Chicago’s air, for the good of Chicago’s health, for the good of Chicago’s beleaguered filling-station owners – to pass the Clean the Air with E15 ordinance.”

Beale’s ordinance has enjoys some pretty widespread support, including backers from the American Council on Renewable Energy, American Lung Association in Illinois, Chicago gas station owner Luke Casson, as well as several other biofuel, agribusiness and environmental groups.

ICM to Increase Efficiency of Nebraska Ethanol Plant

icm_logo1ICM, Inc. is partnering with E Energy Adams LLC to upgrade a Nebraska ethanol plant. This news release from ICM says the company’s patent-pending Selective Milling Technology (SMT) and patent-pending Fiber Separation Technology (FST) will allow E Energy Adams to increase throughput, decrease cost per gallon, and create the ability to produce high-value streams from their traditional DGS, all while increasing ethanol yield and increasing distiller’s corn oil recovery.

David VanderGriend, CEO for ICM, Inc., said, “ICM is pleased to partner with E Energy Adams as they fully adopt the next-generation “biorefinery” concept, allowing them to accomplish their mission of supporting the local economy while delivering profits to their investor owners, area grain producers, and livestock producers. E Energy is a leader in the ethanol industry, and we are proud to support them in their vision for continually improving operations and profitability.

Carl Sitzmann, CEO for E Energy Adams LLC, said, “We’ve been focused on the development of this project for the last two years, and we are pleased to be partnering with ICM. Their 20 years of experience in the ethanol industry, world-class research and development, and long-term vision of the future are perfect complements to our strategic vision involving competitiveness and new technologies. This project will not only give us the low-cost, energy-efficient base that we need to be an efficient producer, but also provide a platform for future development of cellulosic ethanol and differentiated co-products.”

ICM’s SMT™ is the industry leader in ‘fine grind’ technology, with 20 current or pending installations, representing over 1.4 billion gallons of annual ethanol production. FST is the next step in ICM’s EPA-approved pathway to cellulosic ethanol. It separates the corn kernel fiber for use in generating products with higher margin opportunities, or further processing it (using pre-treatment provided as a separate option by ICM) to produce cellulosic ethanol in an existing plant.

Midwest Governors Pen NY Times Op-Ed

Missouri Governor Jay Nixon

Missouri Governor Jay Nixon

Missouri Governor Jay Nixon and Iowa Governor Terry Branstad have an op-ed piece in the New York Times today rebutting a recent controversial, oil industry-funded report from the World Resources Institute about renewable fuels and the Renewable Fuel Standard.

Iowa Governor Terry Branstad

Iowa Governor Terry Branstad

“The World Resources Institute’s report suggests that the world’s agricultural system can’t possibly meet future demands for food and bioenergy in a sustainable way,” the governors write. “We disagree, based on data and recent real-world experience. As governors of two states at the forefront of the nation’s bioeconomy, we have witnessed firsthand the sustainable development of robust and dynamic bioenergy industries.”

We recognize the need for future technological advancements and are optimistic that recent high-tech innovations in precision agriculture will continue to meet the future food and energy demands of a growing world population. Our agricultural system can — and will — continue to meet those demands in a way that is environmentally sustainable, socially responsible and economically efficient.

Read the whole op-ed here.

EIA: Ethanol, Biodiesel, Renewables to Grow in 2015

The latest government numbers show the amount of ethanol and biodiesel, as well as energy produced from wind and solar will increase in 2015. The latest Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA) shows growth for the biofuels, while total renewables used for electricity and heat generation will grow by 3.8 percent this year.
EIA11feb2015
Ethanol production averaged 933,000 bbl/d in 2014, and EIA expects it to average 938,000 bbl/d in 2015 and 936,000 bbl/d in 2016. Biodiesel production averaged an estimated 80,000 bbl/d in 2014 and is forecast to average 84,000 bbl/d in both 2015 and 2016.

In 2013, the electricity generation shares were 6.6% and 6.2% from hydropower and nonhydropower renewables, respectively. Wind is the largest source of nonhydropower renewable generation, and it is projected to contribute 5.2% of total electricity generation in 2016. Wind capacity, which grew by 7.7% in 2014, is forecast to increase by 16.1% in 2015 and by another 6.5% in 2016. Because wind is starting from a much larger base than solar, even though the growth rate is lower, the absolute amount of the increase in capacity is more than twice that of solar: 15 GW of wind versus 6 GW of utility-scale solar between 2014 and 2016.

EIA expects continued growth in utility-scale solar power generation, which is projected to average almost 80 gigawatthours (GWh) per day in 2016. Despite this growth, solar power averages only 0.7% of total U.S. electricity generation in 2016.

American Coalition for Ethanol Elects New Officers

ACElogoThe American Coalition for Ethanol has elected its board officers for 2015:

* President – Ron Alverson, representing Dakota Ethanol, LLC
* Vice President – Duane Kristensen, representing Chief Ethanol Fuels Inc.
* Secretary – Dave Sovereign, representing Golden Grain Energy, LLC
* Treasurer – Owen Jones, representing Full Circle Ag Cooperative

Alverson is a corn and soybean farmer and was the founding chairman of Lake Area Corn Processors, LLC (Dakota Ethanol), a 60 mgy ethanol plant and South Dakota’s first farmer-owned ethanol facility. He served on the Board of the National Corn Growers Association and is an agronomic expert who recently authored a White Paper entitled “Re-thinking the Carbon Reduction Value of Corn Ethanol.”

Kristensen has nearly 30 years of experience in the ethanol industry and since 2004 has served as General Manager of Chief Ethanol Fuels Inc., a 62 mgy plant near Hastings, Nebraska, which is the state’s first dry-mill ethanol production facility. He also serves on the U.S. Grains Council Ethanol “A-team” which develops export demand for U.S. ethanol.

Sovereign farms and is the founding chairman of Golden Grain Energy, LLC, a 120 mgy ethanol plant in Mason City, Iowa. He also owns Cresco Fast Stop, a convenience store that offers E15, E30 and E85. Sovereign was instrumental in developing the Biofuels Mobile Education Center, a 45-foot traveling trailer designed to educate the public about biofuels. He also serves on the board of Absolute Energy, a 115 mgy ethanol plant in Lyle, Minnesota.

Jones is a farmer, rancher, and cooperative business leader who was the driving force behind the installation of the first blender pump in the nation in 2006 at Four Seasons Cooperative (later renamed Full Circle Ag) in Britton, South Dakota.

ACE also elected South Dakota farmer and rancher Lars Herseth and East River Electric Cooperative representative Scott Parsley as two additional representatives to serve the ACE Executive Committee.

New President for POET-DSM Joint Venture

POET DSM logoPOET-DSM Advanced Biofuels has announced that Dan Cummings will serve as first president for the joint venture.

“Dan has more than 25 years of experience in the energy sector, and we’re excited to have him leveraging that knowledge to grow cellulosic ethanol production for the world,” said Jeff Lautt, Chairman of the POET-DSM Board. “We look forward to Dan taking the reins and leading this joint venture into 2015.”

cummingsCummings, who previously served as President and Director of INEOS New Planet BioEnergy, will oversee day-to-day operations of POET-DSM, represent the joint venture publicly, and coordinate functions between the parent companies. He will also act as the central point of contact for external relations, which includes all technology licensing activities for POET-DSM worldwide.

“This joint venture has already proven it can change the world, and I look forward to working with the individuals who helped make that happen,” Cummings said. “After two decades in the energy and clean tech sectors, I’m excited to start this new journey with POET-DSM.”

POET-DSM announced the startup phase in September for its 20 million-gallon-per-year cellulosic ethanol plant, which will later ramp up to 25 million gallons per year. The Emmetsburg, Iowa plant, dubbed “Project LIBERTY,” uses corn cobs, leaves, husk and some stalk to make renewable fuel. The joint venture is now marketing its LIBERTYTM Technology package to third parties for continued energy development.

Anti-RFS Bill Re-Introduced

Representatives Bob Goodlatte (R-VA), Jim Costa (D-CA), Steve Womack (R-AR) and Peter Welch (D-VT), today re-introduced legislation called the RFS Reform Act “to reform the Renewable Fuel Standard (RFS) to help ease concerns created by the ethanol mandate and protect consumers, livestock producers, food manufacturers, retailers, and the U.S. economy.”

Livestock and poultry producer organizations are among those supporting the bill, but general farm groups and corn growers say the RFS is working fine just the way it is.

mess-rfs“The elimination of the corn-based ethanol mandate and blend cap will gut the nation’s biofuel production, strand existing investment in second generation biofuel production and hurt family farmers, ranchers and rural communities that have experienced much-needed reinvestment from this policy,” said National Farmers Union president Roger Johnson. “This is not only a bad step for agriculture, but also is a major setback to the environment and our nation’s attempts to manage its carbon emissions.”

National Corn Growers Association president Chip Bowling notes that “the price of corn today is lower than the cost of production, and less than when the RFS was passed” and that “repealing the RFS would increase the cost of farm programs, hurt rural communities, and make America more dependent on foreign oil.”

Renewable Fuels Association President and CEO Bob Dinneen called the legislation a “reckless paean to Big Oil” and said it was “a slap in the face to corn farmers across the country who responded to the RFS with increased production and yields.”

Growth Energy CEO Tom Buis
says the bill is also a gift to Big Food “in their effort to extend their record profitability by blaming ethanol for food price increases” even as corn prices have been declining. “This has provided an economic boon to the integrated U.S. livestock and chain restaurant industries that tout their profitability to their stakeholders while consumer food prices, led by the meat sector, continue to escalate,” said Buis.

According to the sponsors, the RFS Reform Act “eliminates the corn-based ethanol requirement, caps the amount of ethanol that can be blended into conventional gasoline at 10 percent, and requires the EPA to set cellulosic biofuels levels at production levels.” There are currently 34 co-sponsors for the bill.

Greenbelt to Capture Ethanol from Wine Making

greenbelt_logoA California company will make a new system to capture the ethanol from wine production to sell the gas for commercial purposes. This news release from sustainable energy company Greenbelt Resources says the company will make the system for EcoPAS, engineering company for the California wine industry, that keeps the gaseous ethanol from the fermentation process from becoming an environmental emission.

“After a rigorous bidding process and extensive consideration, we chose Greenbelt Resources. With their cutting-edge ethanol technology and expertise we see a long-term relationship with Greenbelt as our partner,” said Marci Norkin-Schoepel, co-founder of EcoPAS. “By selecting Greenbelt Resources, we benefit not only from their innovative, green manufacturing capabilities, but also their experience in ethanol condensation, which allows the potential for future collaboration beyond contract manufacturing.”

EcoPAS selected Greenbelt Resources as a manufacturing partner to fabricate the initial full-scale PAS units based on Greenbelt’s technology accolades, extensive industry experience and reputation for delivering performance outcomes that exceed customer expectations. A portion of the product produced by the PAS may serve as an excellent feedstock for Greenbelt’s traditional modular distillation and dehydration systems.

“The invention of the PAS by EcoPAS is significant because of its ability to passively perform ethanol vapor-capture without the need for complex controls or major energy inputs – making it a truly environmentally friendly pollution control system,” said Darren Eng, CEO of Greenbelt Resources Corporation. “The EcoPAS management and design team share our vision and have created a growth industry simply by producing a much needed passive, pollution-control solution. Once a critical mass of Passive Alcohol Systems is deployed, the resulting volume of ethanol-containing product can generate demand for distillation and dehydration systems built by Greenbelt Resources from wineries and other fermentation processers in the US and internationally.”

Completion of this full-scale system is expected by the middle of this year.

Corn and Ethanol Groups Blast Report

A report critical of corn-based ethanol is being blasted by groups representing the corn and ethanol industries as being the same old arguments that have been roundly rejected and criticized by the scientific community and disproven by the empirical data, as well as smacking of Big Oil’s efforts to discredit an American success story. The National Corn Growers Association (NCGA), the Renewable Fuels Association (RFA) and Growth Energy all released statements critical of “new” research from the World Resources Institute, where Tim Searchinger and Ralph Heimlich re-hash their already disproven theories of “food vs. fuel” and “Indirect Land Use Change.”

ace14-dc-alversonSouth Dakota corn grower and a member of the Corn Board Keith Alverson said:

“This ‘new’ study is just more of the same, tired arguments Big Oil have been using for years. They simply are not true. In fact, numerous studies by independent, unbiased third parties have come to vastly different conclusions.

The fact is, ethanol is a very efficient energy source. When calculating the amount of energy used to produce ethanol, from farm to pump, ethanol represents a 40 percent net energy gain. No other energy source comes close. Ethanol is also better for the environment: reducing greenhouse gas emissions by 110 million metric tons, the equivalent of taking 20 million vehicles off the road.

There is more than enough corn to meet all demands: food, fuel, feed, and fiber.”

nafb-14-dinneenBob Dinneen, the Renewable Fuels Association’s president and CEO, said:

“Providing a cursory update of a failed theory is not science and does nothing to enlighten the debate about biofuels. For the better part of a decade, lawyer-activist Tim Searchinger has been promoting the flawed notion that increased biofuel use places unnecessary constraints on finite agricultural land resources. But, the “land use change” and “food vs. fuel” arguments are as wrong today as they were seven years ago when Searchinger first gained notoriety with his doomsday predictions…. In fact, Iowa State University’s Center for Agricultural and Rural Development put this issue to bed last November, finding that ‘…the primary land use change response of the world’s farmers in the last 10 years has been to use available land resources more efficiently rather than to expand the amount of land brought into production.’”

fps12-buisTom Buis, CEO of Growth Energy, released the following statement:

“The World Resources Institute’s latest report repackages old, previously debunked food and fuel, as well as Indirect Land Use Change (ILUC) myths in attempts to discredit an American success story, one that is producing both food and fuel, while also improving our environment. Slapping a new title on this previously discredited research won’t change the facts—the American farmer is more than capable of producing an abundant amount of food, feed and fuel, and the air we breathe and our environment, as a whole, is better off for it.”

Buis added that without biofuels, the U.S. actually “might be producing less, not more food, in order to control the expansion of surplus stocks and assistance payments to farmers.” In addition, WRI fails to mention the last two record corn crops, falling corn prices, and co-products such as distiller’s grains that displace the need for other livestock feed crops and reduce the net acreage used to produce ethanol.

Ethanol Report on 20th Ethanol Conference

rfa-nec-15The Renewable Fuels Association’s 20th Annual National Ethanol Conference (NEC) with the theme of “Going Global” is just around the corner now, coming up February 18-20, 2015 at the Gaylord Texan Resort and Convention Center in Grapevine, Texas.

The theme will hone in on how important export markets are to the future growth and financial health of the ethanol industry, particularly in light of the challenges being faced to fully implement the Renewable Fuel Standard (RFS) and grow the domestic industry.

ethanol-report-adIn this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen talks about the upcoming 20th NEC and how the industry has changed in 20 years.

Ethanol Report on 20th Ethanol Conference

Students Recognized for Biodiesel, Ethanol Videos

Students from Iowa have been recognized for their efforts to promote biodiesel and ethanol. The Iowa Renewable Fuels Association (IRFA) awarded prizes in its “Fuel the Future” Iowa High School Video Contest.

Anna Steenson of Des Moines won first place in the contest for Iowa high school students. The IRFA awarded the senior from Central Campus a $1,000 grand prize for her creative and informative video titled “E15: Powering the Future.”

Karly Lent of Bettendorf, Iowa won the $600 second place prize for her video entitled, “Let’s Fuel the Future.” Karly is a junior at Bettendorf High School.

Jacquelyn Huynh, Dakota Karthan, Maria Babcock and Jordan Bacon won the $400 third place prize for their video entitled, “Good for Your Car, Better for Iowa.” This group of girls is a collection of juniors and seniors from Ankeny High School.

“First, I want to thank all of the Iowa high school students who took on the challenge of entering this year’s contest and learning about the benefits of using renewable fuels,” stated IRFA Communications Director T.J. Page. “This year’s video contest winners all created highly imaginative, entertaining, and informative videos that do a great job of explaining the benefits of using cleaner-burning biofuels like ethanol and biodiesel.”

The top three videos were featured at the 9th Annual Iowa Renewable Fuels Summit.

Iowa RFA “Ready to Roll” in 2015

Iowa’s renewable fuels industry is “ready to roll” in 2015 if Tuesday’s 9th Annual Iowa Renewable Fuels Summit is any indication.

iarfa-15-nixonSpeakers at the summit included Missouri Governor Jay Nixon, who represented the Governors’ Biofuels Coalition, former North Dakota Senator Byron Dorgan, and General Wesley Clark (Ret.), Chairman of Growth Energy.

iarfa-15-santorumAlso speaking was former Pennsylvania Senator and potential presidential candidate Rick Santorum who appeared over the weekend at the Iowa Freedom Summit. Santorum’s most tweeted quote from the summit was that the Renewable Fuel Standard (RFS) is “Pro competition, pro environment & pro American jobs.”

Addressing the state of the industry, Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw was very optimistic. “Today, I can say with absolute confidence that Iowa’s renewable fuels industry is ready to roll!,” said Shaw. “We’ve never been in a better position for the availability and diversity of feedstocks; the industry is coming off a profitable year; new markets are being developed; and new technologies are out of the lab and producing on a commercial scale. There is simply no question that this industry is ready to roll. The question is whether the President and Congress are going to allow the renewable fuels industry to “hit it,” or leave us stuck in neutral.”

The IRFA also released a study conducted by ABF Economics economist John Urbanchuk that found 2014 was a record-breaking year for the renewable fuels industry despite significant challenges. “Ethanol and biodiesel producers are part of a manufacturing sector that adds substantial value to agricultural commodities produced in Iowa,” said Urbanchuk. “The first and second-generation feedstocks used to produce renewable fuels are produced primarily by Iowa farmers, and the R&D expenditures for renewable fuels provide important support for Iowa’s universities. Combined, these activities make a significant contribution to the Iowa economy.”

The study found that the renewable fuels industry in Iowa accounts for more than $4.9 billion, or about 3.5 percent, of Iowa GDP, generates $2.5 billion of income for Iowa households; and supports more than 46,700 jobs throughout the economy.