Despite the fact that livestock margins have made a dramatic recovery in the past few years as availability of feed has increased and prices have decreased, a leading livestock economist still opposes the Renewable Fuel Standard (RFS).
“We’ve thrown billions of dollars at this industry already and it ought to have to stand on its own,” said Steve Meyer, Paragon Economics, during an interview last week at an event for pork producers. “It has a place in the fuel business as an oxygenate and as an octane enhancer, it’s not going away from there.”
Meyer, who has always been an outspoken critic of U.S. energy policy, says his beef with the RFS is that it caused ethanol production to increase too much too quickly. “The trend yield on corn is up about two bushels per year. If you had grown the ethanol business at a rate equivalent to that, I wouldn’t have been able to gripe too much about it,” he said. “But it was far faster than that …. and the economic impact of that was very negative for (livestock) producers.”
However, the tide has turned dramatically to the point where demand and prices for livestock and poultry are riding high and there is almost record high feed availability with manageable prices. “We’re not going back to $2 corn and $180 bean meal but we’re at the lowest levels on costs in five years,” said Meyer. “We’re not increasing corn usage for ethanol every year like we were, it’s pretty much flat. It’ll grow a little bit but not much and we can probably keep up with that with trend yield growth on corn.”
Despite that, Meyer thinks the RFS needs to go away. “I don’t hate ethanol,” he says he tells corn producers. “I just don’t like subsidized, mandated ethanol when I’m the alternative user of the input.”
Interview with Steve Meyer, Paragon Economics
There will be a free Ethanol Safety Seminar held on August 26-17, 2014 in Westfield, Massachusetts. Co-hosted by the Renewable Fuels Association (RFA) and Fore River Transportation Corporation there will be a session from 9:00 am to 2:00 pm on Aug. 26, followed by a 10:00 am to 3:00 pm session on Aug. 27. Certificates will be awarded to attendees at the completion of the course, although interested participants should note that registration is limited. This seminar is the last to be funded this season by a Federal Railroad Administration grant through TRANSCAER.
“I’m excited. The RFA seminars offer both rail and emergency response professionals a venue to meet and plan for future events together,” said Paul Ruscio, general manager at Fore River Transportation Corp. “Rail has proven to be a safe and efficient mode of transportation for renewable fuels in the States. Being prepared for potential rail incidents by engaging responders makes good sense for us and our communities. The dialogue that ensues from these seminars creates educated teams that have the means and know-how to handle potential incidents. In my experience, a little preparation and coordination before a team faces a task usually proves beneficial.”
The Ethanol Safety Seminar was developed to give first responders, emergency management agencies, and safety personnel an in-depth look at proper training techniques needed when responding to an ethanol-related emergency. A majority of this training is based on the “Training Guide to Ethanol Emergency Response,” a training package created by the Ethanol Emergency Response Coalition (EERC) that has been distributed throughout the United States and to several countries worldwide.
The course focuses on numerous important areas of ethanol safety including an introduction to ethanol and ethanol-blended fuels, chemical and physical characteristics of ethanol and hydrocarbon fuels, transportation and transfer of ethanol-blended fuels, storage and dispensing locations, firefighting foam principles and ethanol-blended fuel, health and safety considerations for ethanol-blended fuel emergencies and tank farm and bulk storage fire incidents.
The American Coalition for Ethanol (ACE) held re-elections during their 27 annual National Ethanol Conference last week. Eight current board members were re-elected to serve for the remainder of 2014 and through August of 2015:
- Bob Sather, Chippewa Falls, Wisconsin representing ACE Ethanol, LLC
- Chuck DeGrote, Clara City, Minnesota representing Chippewa Valley Ethanol Company
- Steve Vander Griend, Colwich, Kansas representing ICM, Inc.
- Ron Wetherell, Cleghorn, Iowa representing Little Sioux Corn Processors
- Gary Marshall, Jefferson City, Missouri representing Missouri Corn Growers Association
- Todd Sneller, Lincoln, Nebraska representing Nebraska Ethanol Board
- Nick Sinner, Fargo, North Dakota representing Red River Valley Sugar Beet Growers
- Merle Anderson, Climax, Minnesota representing Minnkota Power Electric Cooperative
Three individuals were nominated and elected to serve as new board directors:
- Chris Wilson, Marshall, Missouri representing Mid-Missouri Energy, LLC
- David Kolsrud, Brandon, South Dakota representing Badger State Ethanol
- Greg Krissek, Wichita, Kansas representing Kansas Corn Growers Association
“The ACE board of directors is a dedicated group of active volunteers who represent the grassroots diversity of our entire membership,” said Brian Jennings, ACE Executive Vice President. “Our members are very capably represented by the passion, expertise, and experience the ACE board brings to the table and we are grateful for their support and leadership.”
The ACA Bio Cooperative Limitada (ACA Bio) dry-mill corn ethanol plant has been commissioned in Argentina. The ethanol plant is located near Villa Maria in the central province of Cordoba, Argentina. During the start-up phase, the plant met or exceeded all performance guarantees according to ICM, who designed the plant. The plant will produce both ethanol and animal feed (dried distillers grains/DDGs).
Santiago Acquaroli, ACA Bio plant manager, said, “ICM fulfilled all of our expectations. They provided the engineering documents and the process equipment on time and their technical group always helped our people to complete the erection properly. During the start -up and training period, we felt very well supported. Looking back over the past two years, we can only say thank you to ICM for your help and friendship.”
The construction of the plant and equipment installation was completed in February, 2014. ICM, Inc. supplied the process equipment and components for the ethanol plant. ICM also provided on-site representation throughout the build and installation process, as well as guided ACA Bio through the startup, commissioning and training processes.
“We are thrilled to see the successful start-up and the completion of our first project in Argentina. We look forward to further developing our partnership and collaboration with ACA Bio by providing our expertise, services and process technologies to help advance their success and contribution to the advancement of the local renewable energy industry,” said Dave VanderGriend, CEO of ICM, Inc.
Julian Echazarreta, ACA deputy general manager, added, “If any company comes to Argentina trying to be successful in this type of project, it must have the spirit of full collaboration with their customer like ICM had. Many times ICM went further than the scope required and we appreciate it a lot. Since the beginning we realize that we have in ICM a dependable partner and for this reason we will continue doing business with them.”
It’s the month of celebration for cellulosic ethanol in Iowa. On Tuesday, September 9, 2014 at 11:00 am Quad County Corn Processors will be hosting a grand opening event for its new “bolt on” biorefinery that produces cellulosic ethanol from corn kernel fiber. Quad County is the site of Iowa’s first cellulosic ethanol gallons and the world’s first corn kernel fiber cellulosic ethanol, a process that was invented by Plant Engineer Travis Brotherson and patented by Quad County Corn Processors.
“After four years of research and development, financing hurdles, waiting on EPA rule clarifications and construction, we are excited to see the ACE project working and are proud to be producing the world’s first corn kernel fiber cellulosic ethanol gallons and Iowa’s first cellulosic ethanol gallons,” said Delayne Johnson, CEO of Quad County Corn Processors. “This state-of-the-art technology will create 2 million gallons of cellulosic ethanol out of the corn kernel cellulose, a feed stock that we already have on site.”
“In addition to creating 4 new full-time jobs in Galva, this process will increase our ethanol yields by six percent, increase our corn oil removal by three times and create a feed product that is much higher in protein and lower in fiber,” add Johnson. “In essence, we will create more value out of the corn bushels we already process which increases our efficiency so we can continue to be a leader in the ethanol industry.”
Confirmed speakers for the ceremony include: Bill Northey, Iowa Secretary of Agriculture; Bob Dinneen, President and CEO of the Renewable Fuels Association in Washington, DC; Monte Shaw, Executive Director of the Iowa Renewable Fuels Association; Brian Jennings, Executive Vice-President of the American Coalition for Ethanol; and David Witherspoon, Head of Renewable Fuels for Syngenta.
The public and media are invited. Event attendees can meet by the tents on the west side of the plant which is located at 6059 159th Street. Quad County is situated two miles south of Galva at the intersection of Highways 20 and M-25. Due to limited parking and truck traffic safety, guests are asked to park in the field northwest of the plant and enter the parking area from Highway M-25.
POET-DSM’s Project LIBERTY is celebrating the ethanol plant’s production of cellulosic ethanol produced from corn stover and corn cobs during a grand opening celebration on Wednesday, September 3, 2014. The event will be held in Emmetsburg, Iowa and will showcase what POET-DMS calls a “first-of-its-kind technology that is poised to dramatically expand the world’s resources for transportation fuel”.
The Grand Opening will feature plant tours, a formal ceremony, a flyover by the ethanol-powered Vanguard Squadron, booths, music and more. The public is invited to attend and lunch will be provided.
Project LIBERTY will process 770 tons of corn cobs, leaves, husk and some stalk daily to produce 20 million gallons of cellulosic ethanol per year, later ramping up to 25 million gallons per year. Plant personnel are currently running biomass through the pretreatment process and preparing for the first gallons of ethanol. Project LIBERTY will be the flagship plant in POET-DSM Advanced Biofuels’ plan to license this technology to companies across the U.S. and around the world.
Public tours will be available from 9:00 am to 11:00 am and 1:45 pm to 4:00 pm. A grand opening ceremony will take place from 11:00 am to 12:20 pm. Lunch will be provided and visitors can also view booths and equipment from 9:00 am to 5:00 pm. Location is 777 Main Street in Emmestburg, Iowa, 50536. There will be no public parking at the site. Free parking and regular shuttles will run from the Wild Rose Casino parking lot.
U.S. farmers are expected to produce more corn than last year, according to the latest USDA report out today.
The August Crop Production report finds that good growing conditions are expected to help growers bring in a record-high crop at 14.0 billion bushels of corn, up 1 percent from 2013 which was also a record at the time. Yields are expected to average 167.4 bushels per acre, which would be the highest yield ever for the United States. Objective yield data indicate the greatest number of ears on record for the ten largest corn producing states.
Due to the increased production, the average farm price was lowered a dime from its July estimate, to a range of $3.55 to $4.25 per bushel, which National Corn Growers Association President Martin Barbre says makes it important to keep demand moving forward. “Now is not the time for our federal policymakers to be cutting into the ethanol standard, imposing undue regulations or going slow on trade agreements,” said NCGA President Martin Barbre. “Our farmers are doing their part, working hard and smart on their farms to bring in a good crop. It’s time Washington removed obstacles and cleared a path so we can sell America’s biggest and most versatile crop at a good and fair price.”
The new World Agricultural Supply and Demand Estimate projects ending corn stocks to be 1.808 billion bushels, up 7 million bushels from July and the highest level of carryover stocks since 2005. “It is clear from this report that the food versus fuel debate over the U.S. renewable fuel policy can be put to bed,” said Growth Energy CEO Tom Buis. “It is time to stop attacking a homegrown American industry that is creating jobs, improving our environment and mitigating climate change, all while decreasing out dependence on foreign oil and fossil fuels. It is time that the facts, not rhetoric drive the debate and today’s WASDE report should finally end these ridiculous claims. This report makes clear that the American farmer can fuel America and feed the world.”
Concluding the sixth year of sponsorship at the Sturgis Motorcycle Rally and the Buffalo Chip Campground, Robert White with the Renewable Fuels Association (RFA) believes they are making some real headway in getting the true story about ethanol to motorcycle riders.
“The education to the riders is actually taking on a new life,” said White. “We’re seeing riders talking to riders.”
In this edition of the Ethanol Report, White talks about a rider who pulled up for the Free Fuel Happy Hours who said he defended ethanol to his friends at the rally who told him it was a bad for his motorcycle. “He said ‘I kinda came unglued on them’,” he related. The biker told him that he had been talked in to using it at the rally the year before, and he’s “been using it this entire last year without any issue.”
In another case, White said a guy with a brand new Harley said he had been told by the dealer not to use ethanol and he wanted to get a response to that. “And I said why would you believe me?” White said. “I didn’t engineer your motorcycle, I didn’t put the parts together, I’m not providing a warranty for that motorcycle.” The man agreed, noting that neither did the dealership, but his owners manual from Harley in fact said he could use 10% ethanol. “Harley’s been doing this a long time, as have (other motorcycle manufacturers) they know what fuel is going to be most prominent, least expensive, highest octane option for these motorcycles, and it’s going to be ethanol.”
White says they are looking forward to next year, which will be the 75th annual Sturgis Motorcycle Rally, where RFA will having an even bigger presence with an even bigger crowd.
Find our more about RFA making inroads in motorcycle education here:
Ethanol Report on Motorcycle Education
Subscribe to “The Ethanol Report” with this link.
2014 Sturgis Motorcycle Rally Photo Album
Listen below to White’s interview with automotive expert Bobby Likis from Sturgis:
The Renewable Fuels Association was once again a sponsor last week of the 7th annual Legends Ride, established by the Sturgis Buffalo Chip to raise money for local charities. Thanks to RFA and rider contributions, they raised $54,800 this year for the Special Olympics Black Hills and the Sturgis Motorcycle Museum & Hall of Fame.
The Legends Ride kicks off the Sturgis Rally with an escorted, scenic ride alongside hundreds of fellow Legends Riders through the beautiful Black Hills, ending up at the Sturgis Buffalo Chip for a special riders-only reception with complimentary food, drinks and special live memorabilia auction. To highlight the evening’s festivities, Legends Riders are treated to a double-headliner concert under the stars at the largest music festival in motorcycling.
At the Legends Ride party afterward, RFA was pleased to distribute Ethanol Fueled With Pride beer koozies and t-shirts to bikers. It was just another way that RFA was able to educate riders about the proper use of ethanol in their motorcycles.
2014 Sturgis Motorcycle Rally Photo Album
A new Fuels America campaign spotlights who wins if we lose the Renewable Fuel Standard (RFS).
The top ten list includes:
1. Supertankers: Cutting production of U.S. renewables means more oil imports.
2. Big Oil Execs: Less ethanol in your tank means more in big oil’s wallets.
3. Asthma Inhaler Manufacturers: Cutting the RFS means dirtier fuel and dirtier air.
4. The Air Conditioning Industry: Cutting renewable fuel = more CO2 = climate change.
5. Persian Gulf Realtors: Less American fuel = pumping more dollars overseas.
6. China and Brazil: Killing the RFS means advanced biofuel investments go overseas instead.
7. The Dowager Countess from Downton Abbey: Afraid of change? Killing the RFS kills investment in American innovation.
8. Oil Spill Cleanup Crews: There were 6000 oil spills in 2012.
9. The Koch Brothers: Filling up on fossil fuels fills up their pockets.
10. Gondoliers: Climate change = more sunken cities.
The campaign, which also highlights the negative consequences for all Americans if the RFS is weakened, will run inside the beltway and target the Hill, Politico, the New York Times, the New Republic, and mobile ads. The ads ask, “If America loses the Renewable Fuel Standard, who wins?” and go on to suggest answers: “Less Lower-Cost Ethanol = More $$$ For Big Oil,” or “There were 6,000 oil spills in 2012—16 per day.”
American Coalition for Ethanol Executive Vice President Brian Jennings was pleased with the 27th annual ACE conference held last week in Minneapolis.
“It was another great conference, we covered a lot of important topics,” said Jennings as the conference concluded. “We try to feature our members as much as we can, whether it’s technology they’re implementing at their plant or they’re working on exporting ethanol or distillers grains – we try to give our members the spotlight and I think we did that once again.”
Jennings said one of his favorite sessions during the conference was the Ethanol Innovators panel. “It shows everyone these producers are not relying on the past, they’re looking to the future … they want to reduce their expenses, increase their efficiency and position themselves to be competitive for the long run.”
While Jennings says there is little time left in this year’s Congressional Session to worry about any anti-ethanol legislation being past, he is concerned about the elections and he encouraged his members to exercise their right to be an informed voter. “Talk to these candidates and find out their positions on ethanol and hold them accountable,” he said.
Finally, Jennings adds that next year’s conference will be in Omaha – see you then! Interview with Brian Jennings, ACE Executive Vice President
27th Annual Ethanol Conference photo album
Two fuel retailers took the stage at the American Coalition for Ethanol conference last week in Minneapolis to talk about the trials and rewards of offering their customers a real choice at the pump.
Bruce Vollan (left) of Midway Service in Baltic, SD and Kent Satrang, CEO of Petro Serve USA in North Dakota, shared their stories of why they installed blender pumps at their locations.
“We’re about seven years of having our blender pumps in place,” said Vollan. “It was an ideal time for us to make a change as a small town business.” And, he added, it has grown that business exponentially.
“We’re a Farmers Union oil company,” Satrang said. “We are owned by farmers, so they would like us to sell their fuel.” Beyond that, he just wants to offer his customers a choice.
Both of them also talked about the costs involved in putting in the pumps and offering higher blends and what it has ultimately meant to their communities. Listen to their conversation here: ACE Retailer Roundtable
27th Annual Ethanol Conference photo album
Recipients of the annual awards presented last week by the American Coalition for Ethanol (ACE) exemplified the organization’s new theme of “Power by People.”
Gene Griffith of Patriot Renewable Fuels received the organization’s Grassroots Award from ACE Director of Member and Industry Relations Lacy Dixon. Griffith was recognized for the many ways Patriot has promoted ethanol to the public, including an electronic sign on the highway near the plant in Annawan, Illinois that features revolving messages about the benefits of ethanol. They also have been very active on social media with Facebook and Twitter accounts.
“Producers also have to help educate the public, as well as the industry associations,” said Griffith. Interview with Gene Griffith, Patriot Renewable Fuels
Recognized for excellence in journalism was Jerry Perkins, editor with Biofuels Journal. Perkins was Farm Editor with the Des Moines Register for more than 15 years and says there is no conflict between him being a journalist and his support of ethanol.
This year’s Paul Dana Award went to Charlie Good, owner of the Good and Quick store in Nevada, Iowa. Good had a conflict and was unable to attend the ACE conference but I interviewed him in March at the ACE Fly-in where he told his story about deciding to offer higher blends at his store over his suppliers objections. “I had to de-brand because the oil company didn’t want that under their canopy,” said Good. “My sales are up 20-25% a month and of the gallons that they’re up, virtually all of it is the ethanol fuels.” Interview with Charlie Good, Iowa fuel retailer
As already noted, Rep. Collin Peterson (D-MN) received the Merle Anderson Award this year, presented by Merle himself. The Father of Ethanol was in rare form as he presented the award to his congressman, as you can hear all of in the audio file and see a portion in the video below. Merle Anderson Presents Award to Rep. Collin Peterson
27th Annual Ethanol Conference photo album
Syngenta’s Enogen corn trait technology is the first genetically modified output trait in corn specifically for the ethanol industry and in the past two years since it has been released the industry has seen increasing adoption.
“We’re a new product that’s been adopted by 6-8 plants already,” said Paul Lopez with Syngenta who gave a break out session at the American Coalition for Ethanol conference on how Enogen is helping plants increase throughput. Giving the presentation with him was Tory Kort with Chief Ethanol Fuels in Nebraska, which uses Enogen corn, who shared the results they have seen. “Our enzyme is pretty unique in terms of how it works … it really reduces starches down, making more sugars available, increasing the plant’s efficiencies, so increasing yield and increasing throughput,” added Lopez.
The first plant to adopt Enogen was Quad County Corn Processors, which produced the first gallons of cellulosic ethanol just last month. “They’ve been using our product for two years now,” said Lopez. “This is a win-win. The ethanol plant wins, the local grower wins, the local community wins.”Interview with Paul Lopez, Syngenta Enogen
27th Annual Ethanol Conference photo album
The Urban Air Initiative (UAI) is a non-profit organizations dedicated to improving the quality of motor fuels to improve air quality and enhance public health, especially in urban areas.
UAI is building a diverse coalition of stakeholders to work on replacing harmful aromatic compounds in gasoline with safer alternatives, like ethanol. At the American Coalition for Ethanol conference last week, UAI’s Steve Vander Grind (left) and attorney Todd Palmer with Michael Best and Friedrich provided an update on the organization’s plans and how they hope to grower domestic use of ethanol.
Urban Air Initiative Update
27th Annual Ethanol Conference photo album