US Ethanol Exports Hit High, DDGS Drop in Nov.

RFANewlogoExports of U.S. ethanol hit a nearly three-year high, while shipments of dried distillers grains (DDGS) slipped in November of 2014. In a piece from Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper, the biggest share of the 90.9 million gallons of ethanol, a 15 percent increase from just a month earlier, went to India and a couple of customers in the Western Hemisphere.

India was the top destination for U.S. product in November, receiving 27.6 mg, or 30% of total shipments. Canada and Brazil were other top customers for the month. Year-to-date exports through November stood at 760.2 mg, implying an annualized total for calendar year 2014 of 829.3 mg.

In a reversal from historical trends, shipments of undenatured fuel ethanol accounted for the majority of November exports. Undenatured fuel ethanol exports totaled 65.9 mg, an all-time monthly record and up 143% from October. India was the leading importer of undenatured product at 27.6 mg, followed by Brazil at 17.0 mg and South Korea at 6.1 mg. The volumes shipped to India and South Korea represented the largest-ever monthly volumes sent to those markets. The Philippines (5.4 mg) and Nigeria (3.3 mg) were other top destinations for undenatured fuel ethanol…

November exports of U.S. distillers dried grains (DDGS)—the animal feed co-product manufactured by dry mill ethanol plants—slid 19% from October to their lowest monthly level since March 2013. The decrease in November DDGS exports was reflective of the continued collapse of the Chinese market. Total DDGS exports for the month were 631,721 metric tons (mt), with Mexico (127,189 mt), Turkey (103,331 mt), and Canada (64,186 mt) again occupying the top three positions. After importing an average of 539,000 mt per month from March to August, China took in just 4,689 mt in November. Still, year-to-date DDGS exports stood at 10.59 million mt, meaning the U.S. achieved a new annual export record in 2014.

At the same time, U.S. ethanol imports hit a five-month high in November, but RFA officials say the numbers were still relatively low at just 4.9 million gallons. Year-to-date 2014 imports through November were just 72.4 million gallons, implying an annualized total of nearly 79.0 million gallons.

Oregon Moves Forward with Clean Fuels Program

or-deqThe Oregon Environmental Quality Commission this week approved phase two of the Oregon Clean Fuels Program, which seeks to cut greenhouse gases by lowering the carbon content in Oregon transportation fuels. The new rules, developed by the Oregon Department of Environmental Quality, will go into effect February 1.

RFANewlogoThe Renewable Fuels Association (RFA) is pleased that the commission decided to exclude indirect emissions when calculating the carbon intensity of various fuels regulated under the state’s Clean Fuels Program (CFP). “Oregon officials used common sense and good judgment in proposing and approving the framework for Phase 2 of the CFP. All fuels have indirect carbon effects,” said RFA president and CEO Bob Dinneen. “Oregon did the right thing by taking a careful approach to indirect effects and not putting the policy cart in front of the science horse. We hope other jurisdictions considering LCFS-like policies will follow the lead of Oregon and British Columbia when it comes to carbon intensity scoring.”

In its recommendations to the Commission, Oregon’s Department of Environmental Quality (DEQ) reported that “Recent data has shown that both food (human and animal) and fuel production has increased while the amount of land farmed has stayed constant.” Thus, DEQ proposed to exclude ILUC emissions for now and resolved to “…continue to monitor the status of technical work on this issue and will determine whether to recommend including ILUC and other indirect effects in a subsequent rulemaking, as appropriate.”

The Oregon CFP is similar to the California Low Carbon Fuel Standard (LCFS) in that both programs aim for a 10 percent reduction in the carbon intensity (CI) of transportation fuels used in the state over a 10-year period. However, Oregon’s approach bases CI estimates only on verifiable, direct emission while the California LCFS uses predictive economic modeling scenarios to penalize certain biofuels for theoretical “indirect land use change” (ILUC) emissions, while assuming no other fuels induce any indirect GHG emissions at all, according to RFA.

Dinneen also pointed out that new real-world global land use data is casting doubt on scenarios used by California for the LCFS that penalize biofuels like ethanol.

Bill Introduced to Re-test E15 – Again

Anti-ethanol legislation has already been introduced this very first week of the brand new 114th Congress.

sensenbrenner-2On Tuesday, Congressman Jim Sensenbrenner (R-WI) introduced legislation to require additional testing for 15% ethanol blended fuel (E15), a bill he has repeatedly introduced over the past four years.

Renewable Fuels Association president and CEO Bob Dinneen says the bill would hinder the growth and expansion of E15 and would simply repeat extensive studies that have already been done on the higher-level fuel blend. “The study Mr. Sensenbrenner seeks has been done. The Environmental Protection Agency and the Department of Energy undertook the most exhaustive analysis ever conducted prior to approving the 211(f) fuel waiver. But even more significantly, E15 has been driven more than 100 million miles by consumers without a single reported case of engine failure or performance problems,” said Dinneen. “The rest of the world has moved beyond the hyperbolic angst about E15 and has accepted the fact that higher level ethanol blends are good for consumers, good for air quality, and good for energy security. Mr. Sensenbrenner should as well.”

A recent RFA report found that nearly 70 percent of all new vehicles are approved by automakers for use of E15.

ACE Sets Dates for DC Fly-in

ACElogoAs the 114th Congress is sworn-in today, the American Coalition for Ethanol (ACE) is confirming plans to visit for the 7th annual grassroots fly-in on March 24-25, 2015.

“With more than seventy new members in Congress and concerns over EPA’s implementation of the Renewable Fuel Standard (RFS), there is no better time for people who have a stake in the success of the ethanol industry to join fellow grassroots advocates for ACE’s fly-in,” said ACE Executive Vice President Brian Jennings.

At the 2014 “Biofuels Beltway March,” eighty people from all walks of life, including farmers, fuel retailers, students, and bankers, joined ethanol producers to meet with representatives from the White House, EPA, and USDA. The group also met with 160 congressional offices.

“In addition to a large crop of incoming freshmen, just a small fraction of current lawmakers were in office when the original RFS was enacted in 2005 and modified in 2007 by Congress. Our fly-in is an important opportunity to highlight how America is benefiting from the RFS, the successful development of cellulosic ethanol, and the reliability and progress of E15 and higher ethanol fuel blends,” said Jennings.

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Corn Growers Consider Growth Options for Ethanol

ncga-logo-newThe Ethanol Committee of the National Corn Growers Association met in St. Louis recently to discuss options to continue increasing demand for corn-based fuel.

“Ethanol has been a huge success story for agriculture and rural America because of the economic stimulus it has created through increased corn demand and new jobs. For the general public it provides reduced greenhouse gas emissions, better performance and fuel choice,” said Committee Chair Jeff Sandborn, a farmer from Michigan. “Despite all of our success educationally and legislatively, what we have created is a great start not final destination. We have 10% ethanol in virtually every gallon of fuel sold today but it will take a multidimensional approach to continue to grow the market for ethanol.”

The Ethanol Committee is investigating options to grow the ethanol market on many fronts including integrating higher ethanol blend compatibility into plans to update the nation’s aging fuel infrastructure; continuing to expand public acceptance and support for ethanol outside the corn belt; and evaluating the benefits of a national ethanol brand to aid in consumer identification at the pump.

“Fuel access is a high priority issue for the ethanol industry and corn farmers,” Sandborn said. “If we are going to continue to grow ethanol markets and realize the economic benefits of our ability to produce corn we will need to redouble our efforts to bring higher ethanol blends like E15 and E85 to the marketplace.”

Input from the committee will be relayed to the NCGA Corn Board for their consideration and for broader organizational discussion and policy development at Corn Congress in March.

Ethanol Report Looks at Year Ahead

ethanol-report-adUnfinished business and much of the same old attacks on the RFS are likely to dominate 2015 for the ethanol industry.

In this edition of “The Ethanol Report,” Renewable Fuels Association president and CEO Bob Dinneen takes a look at what he expects to be some of the big issues for ethanol in the year ahead.

Ethanol Report on Industry Outlook for 2015

Ethanol Report 2014 Year in Review

ethanol-report-adEvery year is interesting for the ethanol industry and 2014 was no exception.

Some of the highlights included record production and sales, healthy exports, and the commercial reality of cellulosic ethanol. The low point of the year was definitely the inability of the federal government to set volume obligations for 2014 under the Renewable Fuel Standard (RFS), leaving the industry in somewhat of a limbo.

In this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen takes a look back at some of the good news and bad news for the ethanol industry in 2014 and wishes us all a very happy new year.

Ethanol Report on 2014 Year in Review

DF Cast: Bundling Biomass for a Cellulosic Future

As cellulosic ethanol plants are opening up across the country, those facilities need a way to get the feedstocks, while farmers need a way to get that biomass to those new refineries. That’s where Pacific Ag comes in.

In this edition of the Domestic Fuel Cast, we talk to CEO Bill Levy and Steve Van Mouwerik, Vice President of Operations for Pacific Ag, as they talk about how their custom field residue business, which started in 1999 for baling crop residues for animal feeding operations, is a good fit for the emerging cellulosic industry, as Pacific Ag is demonstrating at Abengoa’s cellulosic ethanol biorefinery in Kansas that went online this past October and is expected to produce 25 million gallons of advanced ethanol per year.

Hear more about it here: Domestic Fuel Cast - Bundling Biomass for a Cellulosic Future

Green Biologics Buys Central MN Ethanol Co-op

greenbiologics1A Los Angeles-based industrial biotechnology and renewable chemicals company has bought a Midwestern ethanol producer with plans to convert the operation to producing renewable normal butanol (n-butanol) and acetone. This news release from Green Biologics Inc. says the company closed the deal to buy Central MN Ethanol Co-op (“CMEC”), which includes a the 21 MGPY ethanol plant.

“We are extremely pleased with the successful closing and look forward to the leadership role that Green Biologics will play in bringing renewable chemicals to commercial reality,” said CMEC CEO Dana Persson. “The OPA team did an outstanding job on all facets of this transaction including expanding the list of bidders to include renewable chemical companies such as GBL.”

Since 2012, OPA has worked with CMEC’s Board of Directors and Company Management to assess its strategic alternatives, including acting as financial advisor to CMEC on the sale of its minority stakes in Guardian Energy, KAAPA Ethanol and Bushmills Ethanol.

Mark Fisler, Ocean Park Managing Director, commented, “This sale marks the 17th successful biofuels transaction for Ocean Park Advisors, which further solidifies the firm’s position as a leader in biofuels investment banking. This pioneering deal demonstrates that it is possible to retrofit and reposition a first generation ethanol plant as a renewable chemical plant.”

The plant will start producing renewable n-butanol and acetone in 2016.

PacificAg Can Help Ethanol Plants Go Cellulosic

pacificag-logoThe largest and most experienced biomass harvest company in the country wants to help ethanol plants develop or expand operations into the production of cellulosic ethanol by saving time and money on supply chain development. PacificAg, which is already supplying biomass for plants in Iowa and Kansas, enables cellulosic biorefineries the ability to source cost-competitive biomass for biofuel and biochemical production.

PacificAg started in the residue management business nearly 20 years ago harvesting forage crops for feed in Oregon and CEO Bill Levy says they have expanded to meet the needs of the growing biofuels industry in the Midwest.

pacificag-harvest“We can save an ethanol plant the time and money in developing a supply chain,” says Levy. “It’s a very specific supply chain with very specific challenges and I think we have a lot of experience overcoming these challenges and developing these supply chains quicker than anybody else.”

Biomass products include corn stover, wheat straw and milo stover products because of their abundance and supply. “What we’ve found in the Midwest is that not all growers are accustomed to removing this supply,” says Levy, stressing that a major component of their suite of services includes a balanced residue management program.

There are two critical elements an ethanol plant must consider when ramping up cellulosic ethanol production: year round biomass supply and sustainability around biomass residue harvest.

Harrison Pettit, a company partner who works with ethanol plants to help them get their biomass programs off the ground, notes that market needs for advanced biofuels industry are long-term and year round. “Ethanol plants are built to operate for more than 30 years.”

How does a grower know if he or she should participate in a biomass residue harvest program? Pettit says the first question to ask is, Are you within 100 miles of a cellulosic ethanol facility? “If you are a corn grower, wheat grower or milo grower, then you really ought to give us a call,” says Pettit. “If you really want to learn about how a residue management program can benefit your ground and benefit your bank account, then we want to talk.”

Learn more about PacificAg and the services they offer for both farmers and ethanol plants in these interviews with Levy and Pettit.
Interview with PacificAg CEO Bill Levy
Interview with PacificAg partner Harrison Pettit

China Approves Imports of Biotech Corn

syngentaSyngenta announced today that it has received approval for the Agrisure Viptera® trait (event MIR162) from China’s regulatory authorities, formally granting import approval. The approval covers corn grain and processing byproducts, such as dried distillers grains (DDGs), for food and feed use.

The Agrisure Viptera® trait is a key component of Syngenta’s insect control solutions, offering growers protection against the broadest spectrum of above-ground corn pests and enabling significant crop yield gains. Agrisure Viptera® has been approved for cultivation in the USA since 2010 and has also been approved for cultivation in Argentina, Brazil, Canada, Colombia, Paraguay and Uruguay.

Syngenta originally submitted the import approval dossier to the Chinese authorities in March 2010. In addition to China, Agrisure Viptera® has been approved for import into Australia/New Zealand, Belarus, the European Union, Indonesia, Japan, Kazakhstan, Korea, Mexico, Philippines, Russia, South Africa, Taiwan and Vietnam.

Leifmark, New Holland Bale Stover for Ethanol

leifmark-new-holland-1Baling corn stover is part of the next generation of cellulosic ethanol, and two major players in the green fuel and agribusiness markets are moving that process forward. Leifmark, LLC and New Holland Agriculture recently teamed up to test equipment and methods used to gather, bale, and store the corn stover left behind after the grain harvest in two Iowa cornfields.

Paul Kamp, Leifmark’s Chicago-based partner, coordinated the 520-bale collection. “Using local specialists and best practices, we showed stover harvesting on area farms is very practical. That’s good news for three ethanol producers now considering new businesses making cellulosic ethanol from biomass.”

Developing more efficient methods and equipment brings down the overall cost of stover, says Kamp, whose company markets Inbicon Biomass Refinery technology in North America.

“Couple lower stover prices with a predictable supply chain,” adds Kamp, “and you reduce risk perceptions with biomass. So future plant owners can feel confident putting their capital into cellulosic ethanol projects.”

New Holland Agriculture’s Scott Wangsgard emphasizes that “technology companies like Inbicon have certain specifications for corn stover bales. To meet them, we’ve been designing specialized equipment that also boosts collection efficiencies.”

New Holland used a high-capacity baler and automated bale wagon that picks up, transports, and stacks the 3′ x 4′ x 8′ square bales required for Inbicon’s refining process. Officials say the square bales handle more easily than round ones, store in much less space, and pack tighter so flatbed trucks can haul more tonnage per trip.

China May Reopen Market for U.S. DDGs

distillers_grains_ Photo US Grains CouncilNews out this week that Chinese officials committed to Agriculture Secretary Vilsack that the ban on imports of U.S. distillers grains (DDGs) containing the MIR 162 trait will be dropped is being met with optimism by the ethanol industry.

“While we are still awaiting the official regulatory announcement from China regarding the approval of this policy, it is welcome news for America’s ethanol industry,” said Growth Energy CEO Tom Buis. “I would like to personally thank Secretary Vilsack for his leadership and steadfast commitment to ensuring a resolution to this issue. Additionally, the many hardworking professionals of the USDA and the USTR deserve praise for their dedicated work behind the scenes and for their persistence in working with their Chinese colleagues to re-establish market access for U.S. DDGs.”

“China has always been somewhat schizophrenic with our protein feed,” said Renewable Fuels Association (RFA) president and CEO Bob Dinneen in an interview today. “There are times when they desperately want it and can’t get enough of it, there are times when they will erect these mysterious trade barriers so that we can’t get our product in there … We think we may be getting through it now.”

According to the office of the U.S. Trade Representative
, one of the outcomes of the U.S.-China Joint Commission on Commerce and Trade meetings was in the area of agricultural exports related to biotechnology traits. “China announced that it would approve the importation of new biotechnology varieties of U.S. soybeans and corn ­… and also that it would pursue a regular dialogue with the United States focused on the benefits of the increased use of innovative technologies in agriculture, for both the United States and China.”

Ethanol Report on RFS Anniversary

ethanol-report-adToday, December 19, marks the seventh anniversary of the signing into law of the Energy Independence and Security Act of 2007 which expanded the Renewable Fuel Standard (RFS).

In this Ethanol Report, Renewable Fuels Association (RFA) president and CEO Bob Dinneen remembers that day seven years ago and talks about its accomplishments so far and how EPA needs to move ahead with the law as written. He also comments on the report out this week from the Bipartisan Policy Center recommending changes to the RFS.

Ethanol Report on RFS Anniversary

RFA Refutes Univ of Minnesota Report on Ethanol

RFANewlogoThose who advocate for ethanol are refuting an academic report about the green fuel. The Renewable Fuels Association (RFA) is countering conclusions made by researchers at the University of Minnesota claiming that ethanol is more harmful to humans and the environment than gasoline. RFA examined the research, recently published in the “Proceedings of the National Academy of Sciences,” finding it ran counter to real-world data, contradicted current lifecycle modeling and research, and omitted key variables when determining the environmental impact of electric vehicles and gasoline, ultimately undermining the credibility of the study.

RFA notes that the paper’s conclusions “…stand at odds with real-world data showing decreases in ozone and PM2.5 concentrations…” and that “Data from 222 EPA sensing sites show that ozone and PM2.5 concentrations have trended downward during the period in which the use of ethanol-blended gasoline has dramatically increased.”

The RFA response goes on to show that “On a full lifecycle basis, the study’s results are contradictory to the results from the Department of Energy’s latest GREET model” and that “There is a substantial body of evidence proving that ethanol reduces both exhaust hydrocarbons and CO emissions, and thus can help reduce the formation of ground-level ozone.”

The study’s reliability is also called into question as it omitted key factors when reaching conclusions on the environmental impact of gasoline and electric vehicles. RFA points out that the University of Minnesota conclusion “…excludes NOx and SOx emissions associated with crude oil extraction, a decision that grossly underrepresents the actual lifecycle emissions impacts of gasoline.” RFA concluded, “Omitting key emissions sources from the lifecycle assessment of EVs and crude oil inappropriately skews the paper’s results for the overall emissions impacts of these fuels and vehicles.”

You can read all of the RFA’s response here.