E85 “Post Your Price” Contest

Fuel prices are on the decline and the Renewable Fuels Association wants to know how low E85 is at your station.

Flex Fuel Pump at Hy-Vee Mills Civic Parkway in Des Moines IA 6-16-14In an effort to promote E85 (85 percent ethanol, 15 percent gasoline) sales and track E85 prices, RFA is offering the opportunity to win FREE E85 for one year with a simple snap of a camera and click of a mouse. All you have to do is submit a photo of an E85 pump to www.chooseethanol.com/PostYourPrice and the winner will be drawn at random. E85 is currently sold at more than 3,440 stations and is approved for use in all flex-fuel vehicles.

“The more information we collect on E85 prices, the more we are able to track and ensure consumers receive a fair price for the high-octane, environmentally-friendly fuel. We hope consumers have fun with this contest, but also understand the cost-saving benefits of higher-level ethanol blends,” stated Bob Dinneen, president and CEO of the RFA.

E85 offers tremendous price savings for consumers, often being sold at $0.75–1.00/gallon less than E10 gasoline. However, RFA recently uncovered signs of price gouging in the St. Louis market during the 2014 summer driving season. It examined retail E85 prices at nine Big Oil-branded stations, finding an average E85 price of $3.48/gallon while the average E10 price stood at $3.45/gallon. The St. Louis retail price for E85 was surprising, given that wholesale E85 prices in St. Louis averaged $2.58/gallon compared to $2.93/gallon for E10. When factoring in RFS RIN prices, locally-available ethanol prices, hydrocarbon blendstock, and a more typical markup, RFA concluded that E85 could have been sold to consumers at retail prices as low as $2.44–2.55/gallon.

In addition to an overall winner, two others will be chosen receive free E85 for a month. This award will be given to the individual who posts a photo of the largest gap between E85 and regular unleaded gasoline and the individual who posts a photo of the smallest gap between E85 and regular unleaded gasoline.

Find out more about the contest here.

Ethanol Advocacy App

ethanol-report-adIf you’re an ethanol advocate, there’s an app for that from the Renewable Fuels Association (RFA).

In this edition of the Ethanol Report, RFA president and CEO Bob Dinneen talks about the new app, what it does, who should use it, and why they developed it. He also comments on when we might yet see a final rule on the 2014 volume requirements under the Renewable Fuel Standard and how railway transportation issues continue to impact the industry.

Ethanol Report on New Advocacy App

Tips for Biofuel Investment In Turbulent Times

As a biofuels plant, how do you make sound plant management and investment decisions in an environment of political turmoil? This was the theme of one of the panel discussions during the 2014 National Advanced Biofuels Conference that nabc plant management paneltook place in Minnesota this week. The conversation focused on how the uncertainty surrounding the Renewable Fuel Standard (RFS) that has not been finalized for 2014 as of this writing, affects decisions made for biofuels plants. The panelists discussed tips and strategies on how they try to keep their business healthy and growing while also trying to position themselves for continued, future success.

Insights were given by Mike Jerke, CEO, Guardian Energy Management LLC; Brian Kletscher, CEO/General Manager, Highwater Ethanol; and Randall Doyal, CEO/General Manager, AL-Corn Clean Fuel who all run currently operating ethanol production facilities. While each one pointed to the prices of feedstocks as being the number one cost of production (feedstock costs are 80 percent of a plant’s production costs) there are other ways to streamline efficiencies to stay competitive and one strategy is to diversify into bolt on advanced biofuels technologies.

Doyal noted that the big takeaway for the attendees was that the existing ethanol industry is looking at those next generation biofuel opportunities. “They look down the road all the time, and that the existing ethanol plants are not Gen 1 – we’re way down the road from Gen 1. We’re far more advanced than that and we look forward to bringing that type of thinking into advanced biofuels,” Doyal said.

When focusing on policy, Doyal said policy directly affects a plant when it decides how to deploy its capital. “If you have uncertainty in policy, it creates an uncertain environment in the lending community and it creates uncertainty in your own board room.”

Doyal stressed, “If you don’t have good, consistent, clear policy, it’s hard to figure out your path forward.”

Listen here to Chuck’s interview with Randall Doyal speaking about how policy uncertainty affects plant decisions: Interview with Randall Doyal, AL-Corn Clean Fuel

Click here to listen to the comments of the three panelists:
Remarks from Mike Jerke, Guardian Energy Management
Remarks from Brian Kletscher, Highwater Ethanol
Remarks from Randall Doyal, AL-Corn Clean Fuel

2014 National Advanced Biofuels Conference & Expo Photo Album

Coverage of The Advanced Biofuels Conference and Expo is sponsored by
Coverage of The Advanced Biofuels Conference and Expo is sponsored by New Holland

RFA Updates Fueling A Nation, Feeding the World

An updated version of the paper “Fueling a Nation, Feeding the World,” has been released by the Renewable Fuels Association (RFA). The publication outlines ethanol’s contribution to the global food and feed supply and also contains information that RFA said disproves the “fabricated food vs. fuel” debate.

Fueling a nation“The U.S. ethanol industry has quietly evolved into one of the largest feed processing sectors in the world, generating nearly 40 million metric tons of high-protein, high-energy animal feed in the 2013/14 marketing year,” said Bob Dinneen, RFA president and CEO. “The RFA publication is a resource intended to educate policymakers and consumers about the industry’s role in producing feed, to counter the nonsensical food vs. fuel notion, and explain the benefits of ethanol production and co-products for both food and feed markets.”

The booklet outlines the co-products of ethanol production, such as distillers grain, corn distillers oil and corn gluten feed. For example, a 56-pound bushel of corn will yield 2.8 gallons of ethanol and 17 pounds of distillers grain, which is commonly fed to beef cattle, dairy cows, swine, poultry, and even fish. The handbook explains that “the feed produced by ethanol plants in 2013/14 would be enough to produce nearly 50 billion quarter-pound hamburger patties — or seven patties for every person on the planet.”

The publication concludes by stating, “Not only are U.S. ethanol producers helping to meet future demands for energy, but they are also helping to meet the increasing food and feed needs of a growing world.”

RFA will be sharing the booklet with international buyers and U.S. producers of ethanol-related co-products, such as distillers grain, at the Export Exchange taking place in Seattle, Washington October 20-22 2014.

Small Biodiesel Maker Closing Indicative of RFS Problem

yokayo1While the closing of one small biodiesel maker in California might not seem like big news, it’s certainly indicative of the problems facing the industry, big and small producers alike. This story from the Ukiah (CA) Daily Journal says that Yokayo Biofuels, which turned waste cooking oil into biodiesel, has closed.

[Kumar Plocher, Yokayo Biofuels' CEO] says the biggest reason for their closure was due to a lack of government support both at the state and federal levels. He explains that the carbon credit programs, those where petroleum companies are required to buy a certain amount of renewable fuels, allowed his company to bank carbon credits, normally valued high based on demand. This year state and federal value levels were very low: the state’s due to tampering by global companies that flooded the market and at the federal’s due to the Obama administration and the EPA. “Every year the federal government is supposed to raise the requirement of renewable fuel that should be purchased. At the beginning of 2014, they did not do that; they kept it static. They waited until September to announce a tiny increase, and by that time the damage was done and carbon credits were worthless all year. Every mid-term election year, the dollar per gallon subsidy that goes to biofuels has been absent; they wait until after the election.”

Plocher’s complaint is a common one among advanced biofuel makers and their advocates this year. In fact, at the recent National Advanced Biofuels Conference & Expo, Michael McAdams, founder and president of the Advanced Biofuels Association, said the partnership between the federal government and industry has to have clarity and certainty, but that’s not been the case lately.

“What we haven’t had in the last two years is certainty for the people I represent in the advanced and cellulosic sector,” McAdams said.

Similarly, Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA), pointed to the U.S. Department of Agriculture’s estimates that corn prices will hit an eight-year low because of the government’s failure to follow through on the promises made in the Renewable Fuel Standard (RFS).

“Indeed, today’s USDA report should be the closing argument in the debate over the 2014 RFS final rule,” Dinneen continued. “When farmers made their planting decisions for the 2014 season, they anticipated that the Environmental Protection Agency (EPA) and the White House would continue to enforce the statutory RFS volumes. But in one fell swoop, the EPA’s proposed rule wiped away demand for 500 million bushels of corn and grain sorghum. Now, farmers are faced with corn prices below the cost of production and the risk of returning to an era of increased reliance on federal farm program payments.”

There is a little good news in all of this. Plocher was able to sell Yokayo Biofuels’ biodiesel assets to like-minded Simple Fuels.

East Kansas’ Jeff Oestmann Featured on Car Clinic

Bobby Likis Car ClinicThe ethanol industry was well represented on the nationally syndicated car-talk program “Bobby Likis Car Clinic” when Bobby Likis spoke with East Kansas Agri-Energy’s President and CEO Jeff Oestmann. The show aired Saturday, October 11, 2014 and the two ethanol advocates chatted about local, regional and national issues surrounding ethanol production.

Oestmann, whose career spans 20 years in the bioenergy and grain processing industries, currently serves on the Board of Directors of both the Renewable Fuels Association (RFA) & Kansas Association of Ethanol Producers. During the program, Oestmann discussed the consumer benefits of ethanol production and its impact on local communities and the U.S. economy. Oestmann is a non-commissioned officer who served in the U.S. Marine Corps for 11 years, including service in the USMC’s elite Embassy Guard.

Jeff Oestmann East Kansas Agri-Energy“I have a question slate lined up for Jeff that addresses ethanol and the Renewable Fuel Standard (RFS), the U.S economy, engine performance and national security. Consumers – and American citizens – need to hear the message,” said Likis.

Oestmann shared many facts during the program. “We use cutting edge technology at East Kansas Agri-Energy to produce high-quality ethanol that helps consumers save an average of $1.00 per gallon at the gas station and also benefits our environment by reducing greenhouse gas emissions. We put a high priority on innovation, and the biofuels we produce – including next generation renewable diesel – help reduce America’s dependence on foreign oil, which in turn bolsters America’s national security.”

Click here to listen to Oestmann’s interview.

Crop Report Underscores Need for Market Certainty

The U.S. Department of Agriculture (USDA) has released new corn crop estimates that confirm another record setting corn crop and after accounting for the surplus after all demands are met, will hit a 10-year high. The WASDE report predicts the final 2014 corn crop at 14.48 billion bushels based on a record average yield of 174.2 bushels per acre In addition, WASDE estimated global grain stocks will reach a 14 year high.

While the corn crop is at record levels, corn prices are falling. USDA projected prices will average $3.40 per bushel – the lowest in eight years. This is also below the cost of production for more farmers.

“API [American Petroleum Institute] has spent millions upon millions of dollars on ad campaigns trying to sell people on the canard that ethanol drives up food prices in a misguided attCorn Harvestempt to garner opposition to the Renewable Fuel Standard (RFS),” said Bob Dinneen, CEO and president of the Renewable Fuels Association (RFA). “But their argument is bankrupt. Because of the RFS, farmers have invested in technology and increased yields to assure ample supply for all users. Today’s report demonstrates the API campaign is intellectually dishonest.

“Indeed, today’s USDA report should be the closing argument in the debate over the 2014 RFS final rule,” Dinneen continued. “When farmers made their planting decisions for the 2014 season, they anticipated that the Environmental Protection Agency (EPA) and the White House would continue to enforce the statutory RFS volumes. But in one fell swoop, the EPA’s proposed rule wiped away demand for 500 million bushels of corn and grain sorghum. Now, farmers are faced with corn prices below the cost of production and the risk of returning to an era of increased reliance on federal farm program payments. The White House has an opportunity to help alleviate this situation simply by fixing the badly misguided 2014 RFS proposal and getting the program back on track.”

Fuels America Is Spilling the ‘Oil’

Fuels America is spilling the oil detailing the amount of money Big Oil has spent to “rig the political system” with lobbyists and campaign cash since 2008. Using data from opensecrets.org, the oil industry has spent more than $1.1 billion, $961 million lobbying Congress and $146 million in campaign contributions. This equates to more than $2 million for each member of Congress. The coalition said a significant amount of the funds were used to “block renewable fuels” and to “rig Congress and campaigns” across the U.S.

The oil industry reaped $93 billion in profits last year and continually receives sweetheart tax breaks upwards of $470 billion and counting, while renewable fuels generate $14.5 billion in tax revenue every year.

Meanwhile, said Fuels America, the oil lobby has continued to fight to kill the Renewable Fuel Standard (RFS), which would permanently outsource thousands of American jobs and increase our reliance on foreign oil from hostile and unstable regions. The coalition has urged President Obama to resist pressure from the oil lobby and reject an Environmental Protection Agency (EPA) proposal to gut the RFS.

Rigging the Tax Code ad

The ads, which will run for the next week, link to a page that breaks down the numbers and invites Americans to join the fight against oil industry efforts to rig the system and block competition from renewable fuels. They can be seen on sites such as POLITICO.com, RollCall.com and TheHill.com.

RFA Brings Ethanol Safety Program to Canada

Ethanol safety has been shared with the Canadians. The Renewable Fuels Association (RFA) met with Transport Canada’s Emergency Response Action Plan (ERAP) Task Force to educated them on emergency preparedness.

Ethanol Safety SeminarRFA’s Vice President of Technical Services, Kristy Moore, spoke remotely to Transport Canada’s ERAP Task Force and detailed current RFA safety initiatives, outlined transportation methods available for ethanol distribution specifically focusing on rail, and delivered an overview of the U.S. ethanol industry.

“A solid emergency response program is vital to everyone — no matter the country — and I applaud Transport Canada for having the foresight to get ahead of the game and formulate a national emergency response program,” said Moore. “We are excited to begin working with them to translate RFA safety materials into French and help them develop an ethanol safety seminar program similar to the very successful RFA program here in the States.”

RFA has been involved in ethanol education around transportation safety and emergency response for many years. The Association is a founding member of the Ethanol Emergency Response Coalition (EERC) and joined TRANSCAER — a transportation safety initiative that focuses on community emergency response — in 2007. RFA worked with the EERC to establish an ethanol safety seminar program that goes around the country educating local firefighters and first responders on the best way to respond to a potential emergency situation. The seminars utilize the RFA’s “Training Guide to Ethanol Emergency Response”. Nearly 150 safety seminars have been held in 27 states.

Minnesota Bio-Fuels Association Working for You

The Minnesota Bio-Fuels Association is working on behalf of the biofuels industry and consumers throughout Minnesota. With several successes under their belt, the Association has identified several more goals they would like to achieve on behalf of the biofuels industry over the next few years.

“We are hopeful the next two years will lead us into opportunities to develop higher usage of ethanol blends, in particular we will work hard on promoting usage of E15 in 2001 and newer vehicles,” said Brian Kletscher, CEO of Highwater Ethanol and President of the Highwater Ethanol Aerial PhotosBoard of the Minnesota Bio-Fuels Association. “To help accomplish this we have hired a Biofuels Marketing Manager, this will allow us to directly communicate with the many gas station owners in the State of Minnesota and give them guidance on how to bring in E15 to their gas station while providing and economic benefit to them as owners while also passing on a savings to their customers in lower cost for E15.”

Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association echoes Kletscher’s goal. In addition, Rudnicki said they are continuing to increase the use of E85. “Sales of E85 in Minnesota have been on the rise but there is still plenty of room to grow. There are many flex-fuel vehicle owners who don’t know the benefits of using E85 or even the fact that it’s 80 cents cheaper per gallon on average in Minnesota.”

When asked if the biofuels industry would have seen as many successes without the Minnesota Bio-Fuels Association, Kletscher said while the industry was growing prior to the formation of the Association, by working with Minnesota Corn Growers Association, Soybean Growers Association and other ethanol related organization, the formation of the Association has allowed the ethanol industry and biofuels industry the opportunity to branch out and grow in supporting and promoting the usage of their products.

“While doing this we have maintained a strong relationship with the associations and related organizations that walked with and grew the biofuels industry to the point that it is today,” said Kletscher.

However, as Rudnicki identifies, the political landscape will have an effect on their work but for the most part, the view of biofuels is positive. “We are fortunate that many of our federal and state-level senators and representatives are supportive of biofuels and support measures to increase its usage,” he said. “We work closely with many of them and they understand how important biofuels are to the economy in Minnesota and its role in reducing prices at the pump, greenhouse gases and our dependence on foreign oil. Biofuels are the only viable solution to removing our dependence on harmful fossil fuels and many of them understand that.” Continue reading

Food Prices Still Up Despite Lower Corn Prices

With record corn production forecast this year comes lower corn prices, which makes the food versus fuel argument harder than ever to make, according to Growth Energy.

Total corn production is now projected at 14.475 billion bushels, 550 million bushels more than last year’s record, while the average price received by farmers is expected to be $3.40 per bushel, the lowest price in eight years.

Meanwhile, the United Nations Food and Agriculture Organization (FAO) reports the international food price index is down 6.0 percent over the last year, grain prices are down nearly 9 percent since 2013, but meat prices are nearly 22 percent higher than a year ago.

Domestic food prices are up 2.5 percent compared to December 2013, nearly the same as the overall Consumer Price Index, which is up 2.1 percent for the same period. But while corn and other grain prices are rapidly declining, consumer meat prices are up 11.6 percent since last December.

growth-energy-logo“The current WASDE projections and recent reports from the FAO and Bureau of Labor Statistics further confirm that there is virtually no correlation between U.S. ethanol production and consumer food prices,” said Tom Buis, CEO of Growth Energy. “Corn prices are below the cost of production for most farmers, and ethanol is selling approximately $1.00 per gallon less than the gasoline on the wholesale marketplace.”

“As integrated livestock and poultry companies brag about their record profits and margins to their stockholders and investment bankers, the Turkey Federation, National Chicken Council and The National Council of Chain Restaurants, all allies of Big Oil, continue their campaign to intentionally mislead Americans about the cause of rising food prices in the U.S,” Buis added.

USDA Increases Crop Forecast Again

il-harvest-14The harvest may be running a little slow right now, but the latest report from USDA’s National Agricultural Statistics Service is calling for a bit more corn than expected a month ago, adding to the already record forecasts.

Corn production is now forecast at 14.5 billion bushels, up almost one percent from the previous forecast and four percent more than last year. Corn yields are expected to average 174.2 bushels per acre, up 2.5 bushels from the September forecast and 15.4 bushels above the 2013 average.

The bigger crop mean lower prices and USDA’s latest World Agricultural Supply Demand Estimate also released today. Corn supplies for 2014/15 are now projected at 15,736 million bushels, up 129 million from last month, while season average prices were lowered 10 cents to $3.10 to $3.70 per bushel. Corn used to produce ethanol, distiller’s grains and other co-products is projected at 5.125 billion bushels, while corn consumption for feed is estimated at 5.375 billion bushels.

“PUMP” Movie Getting Good Reviews

pump-movieA new documentary film that explores the history of the American fueling infrastructure and how it has led to today’s oil-dominated market, which features some ethanol industry figures, is being well received by critics and viewers alike.

“PUMP” the movie, opened last month and has a rating of 71% fresh on Rotten Tomatoes, with an 82% audience approval rating. Big name reviewers like the New York Times and Variety have had very good things to says about the movie.

The film is the latest from Josh and Rebecca Tickell, who have done other documentaries on alternative fuels beginning with FUEL, released in 2009, that focused on biodiesel.

PUMP features several familiar faces of folks known in the renewable fuels industry, including “Energy Victory” author Dr. Robert Zubrin, Biofuels Digest Editor Jim Lane, and Renewable Fuels Association Vice President for Industry Relations Robert White.

“Not often do small town farm kids from Kansas make it to Hollywood’s big screen, but I am fortunate enough to be one of those, if even for just a few seconds,” writes White in a column today for the E-xchange Blog. “The opportunity to be a part of an educational effort of this scale is not only rewarding, it is exciting.”

To find out more about the movie and when it might be playing in your area – check out PumpTheMovie.com and like it on Facebook.

Get to Know the Minnesota Bio-Fuels Association

In April 2011 the Minnesota Bio-Fuels Association was founded to represent and promote the renewable fuels industry in Minnesota. According to Tim RudnickiTim Rudnicki Executive Director MN Bio-Fuels Association, executive director, as a state and a union, the country faces many challenges on the energy and environmental front and the Minnesota Bio-Fuels Association is providing solutions to these challenges.

When asked about the Association, Rudnicki explained, “We are a non-profit organization and our members include ethanol producers in Minnesota as well as industry vendors. Our aim is to work with our stakeholders in a collaborative manner to achieve our collective goal of a greener future, a stronger economy in Minnesota, consumer savings at the pump and a more energy independent America.”

The Association has three key areas of focus:

  1. Advocacy: Their active engagement takes place at the state capitol in St Paul with a variety of state agencies and departments as well as through the governor’s office. They work with policymakers and agency officials to give voice to the biofuels industry in matters that impact day-to-day production operations and to further grow the industry.
  2. Fuel Supply Chain Development: They work closely with fuel retailers in the state to increase the availability of fuels such as E15 and E85. They are also able to connect them with wholesale suppliers of E15 and E85 and infrastructure and equipment providers and also educate them on the business case to sell E15 and E85.
  3. Communications: As the representative of the biofuels industry in Minnesota, they organization is constantly communicating and educating consumers on the various benefits of ethanol in transportation fuel as well as changing negative perceptions. Their communication channels include a website with extensive resources on biofuels, social media, advertising and email marketing and they also liaise with the media throughout the state.

One of the founding members of the Minnesota Bio-Fuels Association is Highwater Ethanol, a 59.5 million gallon per year denatured ethanol facility located in Lamberton. They also produce nearly 150,000 tons of dried distillers grains (DDGs) and in April of this year began producing corn oil.

In May of 2006, Brian Kletscher began working with Hightower Ethanol as the president of the Board of Directors and then in November of 2008 was hired as the CEO. He has served as the president of Minnesota Bio-Fuels Association since 2011.

When asked why Highwater Ethanol became involved with the Association, Kletscher noted that being a part of Minnesota biofuel producers, they needed another strong voice to deal directly with potential challenges for the industry and the Association is set up to address many biofuel opportunities. For example, the Association has been participating in bringing additional biofuel usage to Minnesota, by supporting usage of higher blends of ethanol and other biofuels. Continue reading

MIT Boosts Yeast Tolerance

Gregory Stephanopoulos, with the Willard Henry Dow Professor of Chemical Engineering at MIT has discovered a way to boost yeast tolerance to ethanol by altering the composition of the medium in which yeast are grown. “Toxicity is probably the single most important problem in cost-effective biofuels production,” said Stephanopoulos. The research was published in the journal, Science.

Ethanol and other alcohols can disrupt yeast cell membranes, eventually killing the cells. The MIT team found that adding potassium and hydroxide ions to the medium in which yeast grow can help cells compensate for that membrane damage. By making these changes, the researchers were able to boost yeast’s ethanol production by about 80 percent. They found the approach works with commercial yeast strains and other types of alcohols, including propanol and butanol, which are even more toxic to yeast.

MIT yeast and ethanol research.jpg“The more we understand about why a molecule is toxic, and methods that will make these organisms more tolerant, the more people will get ideas about how to attack other, more severe problems of toxicity,” explained Stephanopoulos.

The research team began its quest searching for a gene or group of genes that could be manipulated to make yeast more tolerant to ethanol, but this approach did not yield much success. Yet when the researchers began to experiment with altering the medium in which yeast grow, they found some dramatic results. By augmenting the yeast’s environment with potassium chloride, and increasing the pH with potassium hydroxide, the researchers were able to dramatically boost ethanol production. They also found that these changes did not affect the biochemical pathway used by the yeast to produce ethanol: Yeast continued to produce ethanol at the same per-cell rate as long as they remained viable. Instead, the changes influenced their electrochemical membrane gradients — differences in ion concentrations inside and outside the membrane, which produce energy that the cell can harness to control the flow of various molecules into and out of the cell.

Ethanol increases the porosity of the cell membrane, making it very difficult for cells to maintain their electrochemical gradients. Increasing the potassium concentration and pH outside the cells helps them to strengthen the gradients and survive longer; the longer they survive, the more ethanol they make.

Researchers are also working on using this approach to boost the ethanol yield from various industrial feedstocks that, because of starting compounds inherently toxic to yeast, now have low yields.